Head of Fidelity Digital Assets Tom Jessop has said bitcoin’s adoption in the financial sector had reached the peak, with the asset sustaining its ongoing bull run.
He noted that the current financial environment characterized by low interest rates has contributed to bitcoin’s and other cryptocurrencies’ ongoing momentum.
In his view, Jessop said that the availability of easy money brought about by stimulus packages has seen cryptocurrencies increasingly become alternative investment assets.
The official cited the coronavirus pandemic as a catalyst for bitcoin’s growth, inspiring institutional investors’ entry into the sector.
“We’re not going to get out of this stimulated environment anytime soon. I think we’ve reached a tipping point. I think you’ve had the accumulated experience of now roughly 12 years of the Bitcoin blockchain being operative since the genesis block in early 2009. And the pandemic, quite frankly, was a catalyst for institutional adoption, and specifically Bitcoin and the narrative, or use-case, around digital gold,” Jessop said.
Fidelity was among the leading firms to integrate digital assets with traditional finance investment portfolios. Other leading institutions, including Microstrategy and Grayscale, increased their bitcoin investment, sparking the current bitcoin bull run.
Notably, the $1.5 billion investment in bitcoin by electric vehicle manufacturer Tesla (NASDAQ: TSLA) largely contributed to the asset’s all-time high above $61,000 on March 14. Furthermore, other traditional institutions have emerged to support cryptocurrency transactions, including PayPal (NASDAQ: PYPL) and Visa Visa (NYSE: V)
Bitcoin projected to hit $400,000 in 2021
Furthermore, other financial players continue to remain bullish about the prospects of bitcoin. For instance, Bloomberg bitcoin analysts project that the asset could hit $400,000 this year with increased adoption.
“Our graphic depicts bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since 2011 high,” Bloomberg analysts said.
Worth noting is that historical performance does not guarantee that bitcoin will surge in the future.
By press time, bitcoin was trading at $58,038, having gained 2.88% in the last 24 hours based on data provided by CoinMarketcap.