Bitcoin surged to a new all-time high over the weekend, fueled by concerns over the U.S. government shutdown and rising national debt. Meanwhile, Morgan Stanley issued new guidance for its advisors to push bitcoin ETFs to clients, and Grayscale launched the first U.S. ETFs with staking rewards. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.
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BITCOIN SOARS PAST $125K ON SHUTDOWN FEARS, RECORD ETF INFLOWS: Over the weekend, bitcoin (BTC-USD) surged to a new all-time high of over $125,600, liquidating nearly $100M in short positions within a single hour. Decrypt notes that the the rally was driven by record inflows into spot bitcoin ETFs and a broader macroeconomic narrative that analysts at Goldman Sachs (GS) and JPMorgan (JPM) are calling the “debasement trade.” This sentiment is being fueled by instability in Washington, with a government shutdown and the U.S. national debt approaching a record $38T. Cointelegraph reports that BlackRock’s (BLK) CEO Larry Fink has previously cited currency debasement fears as a potential catalyst for bitcoin, while Bridgewater Associates founder Ray Dalio has warned investors to allocate only a small amount of their portfolios to hard assets like bitcoin or gold.
MORGAN STANLEY BACKS CRYPTO ALLOCATION: The institutional adoption of digital assets continues to accelerate. According to multiple reports, Morgan Stanley (MS) has issued new guidance for its 16,000 financial advisors to begin soliciting bitcoin ETF investments for eligible clients. A new report from the firm recommends an allocation of up to 4% for portfolios focused on “opportunistic growth,” referring to bitcoin as “digital gold”. Adding to the bullish sentiment, in a note to Decrypt, Standard Chartered (SCBFF) reiterated its near-term price target of $135,000 for bitcoin and a year-end target of nearly $200,000.
GRAYSCALE AND BITMINE DEEPEN CRYPTO EXPOSURE: In a first for the U.S. market, Grayscale Investments launched ETFs for ether (ETH-USD) and solana (SOL-USD) that feature staking, allowing investors to earn passive income. Meanwhile, BitMine Immersion Technologies (BMNR) continued its accumulation strategy, purchasing an additional 179,251 ether worth roughly $821M.
GALAXY DIGITAL TARGETS RETAIL, CHALLENGES COINBASE: Galaxy Digital (GLXY) has launched GalaxyOne, a new platform for individual investors, positioning the firm to compete with retail-focused companies like Robinhood (HOOD) and Coinbase (COIN). According to a press release, the mobile app offers unified trading across crypto, stocks, and ETFs. The move into retail comes as other companies expand their crypto integrations, with Samsung (SSNLF) Wallet adding in-app access to Coinbase One for U.S. users.
PRICE ACTION: As of time of writing, bitcoin (BTC-USD) was trading at $125,173.64, while ether (ETH-USD) was trading at $4,675.56, according to price data from CoinDesk.
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