A Monthly Review Of May 2021 | BitcoinMag

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The Bitcoin price fell to the region around $ 30,000, despite the adoption of the crypto market by institutional investors.

Crypto market suffered far-reaching losses

The cryptocurrency market experienced one of its worst months in almost a year, losing around a trillion dollars in the process. Bitcoin, as the leading digital currency, plunged nearly 50% as its price plummeted to the $ 30,000 region after a massive sell-off. Now the price recovered wiede, currently BTC is trading around $ 40,000. Ethereum rose to an all-time high above $ 4,500 earlier this month, but also lost more than 50% of its value and is now trading just above $ 2,000. In addition to these two, the other leading cryptocurrencies including Binance Coin, Cardano, Dogecoin, Polkadot, Litecoin also suffered massive losses.

The price slump also had a big impact on the market. Leading crypto exchanges such as Binance, Kraken, Gemini and Revolut were out of action during the price crash, making it impossible for millions of traders to either buy the dip or sell their assets.

Traditional financial institutions offer crypto-related services

Despite the market crash, the cryptocurrency market has been embraced by numerous traditional financial institutions. Banking giant UBS announced that it is exploring various ways to provide clients with access to cryptocurrencies. The Swiss bank wants to allow its wealthy clients to invest part of their assets in cryptocurrencies.

However, it has yet to decide which crypto investment products it wants to introduce. As the next financial institution, Citigroup revealed it was working to provide cryptocurrency services to customers. The investment bank said that there is a high demand for crypto services among its customers, which is why it is working to provide customers with access to crypto products. However, the bank said it would only introduce regulatory compliant services.

Investment bank Cowen was another major financial institution that announced its entry into the cryptocurrency space. The bank said it will provide cryptocurrency custody services to hedge funds and asset managers. The move would make Cowen one of the first Wall Street firms to offer such services to customers.

Wells Fargo also made a push after announcing its intention to provide access to cryptocurrencies to wealthy customers. The bank said it wanted to introduce an actively managed strategy for its wealthy clients. Wells Fargo said that due to the inherent risks in the crypto market, it will currently remain engaged in cryptocurrencies.

Earlier this month, Goldman Sachs began offering Bitcoin derivatives to investors. The bank’s clients now have access to Non-deliverable Forwards (NDFs), with Goldman Sachs buying and selling BTC futures in block positions at CME Group. S & amp; P Dow Jones made its move by launching three cryptocurrency indices. The newly introduced indices track the Performance of Bitcoin, Ether, as well as a combined Performance of BTC and ETH in terms of market capitalization. Online investment firm Saxo Bank also launched a cryptocurrency offering that offers its clients the opportunity to trade BTC, ETH and LTC against the leading fiat currencies EUR, USD and JPY. The company said that this service will be available from a single margin account, so users will not have to carry a cryptocurrency wallet for it.

Finally, MoneyGram revealed that US customers can withdraw crypto holdings in cash at any branch in the country. The payments giant said it intends to expand its services to Europe and other parts of the world in the coming months. MoneyGram launched this Service in partnership with Coinme.

SEC Must now review Two Ethereum ETFs

The US Securities and Exchange Commission (SEC) is currently reviewing nine Bitcoin ETF applications from various companies. However, she now has her hands full as Ethereum’s adoption grows. This month, VanEck and WisdomTree submitted applications for ether exchange traded funds (ETFs). These are the first two Ether ETF applications filed in the US. By market capitalization, Ethereum is the second largest cryptocurrency. Always honest investors are looking for a way to participate in this asset. Canada has already approved three Ethereum ETFs, several more Bitcoin ETFs are already being traded on various exchange platforms.

Ban on crypto activity dominated the headlines

This month has also been marked by companies and countries that have issued bans and restrictions on certain crypto activities. Tesla announced that it would no longer accept Bitcoin as a payment option for its electric cars. The company cited the massive energy consumption of bitcoin and its impact on the environment as the reason for discontinuing this payment method.

China followed with two important news regarding cryptocurrencies. The National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China jointly announced that financial institutions and payment companies are prohibited from providing cryptocurrency services to individuals or companies. Chinese Vice Premier Liu He and the State Council then called for a crackdown on crypto mining and trading activities. In the field of crypto mining, China is the world leader, the country accounts for over 60% of the total Bitcoin mining activity.

Iran went one step further and banned crypto mining activities for four months. The Middle Eastern country blamed mining for the frequent power outages in major cities. Mining activities are now suspended in Iran until the end of the summer, despite the fact that crypto mining generates hundreds of millions of dollars for the economy.

PayPal wants to allow customers crypto withdrawals to external wallets

Online payment giant PayPal said it is working on a feature that will allow users to withdraw cryptocurrencies on third-party wallets. Currently, PayPal allows its customers to buy, sell and hold four cryptocurrencies. However, you are not allowed to transfer the Coins to other Wallets. PayPal’s announcement comes a few weeks after the British company Revolut revealed that its customers can withdraw bitcoins to external wallets. The trend could lead to more payment companies offering customers such a feature.