New York's BNY Mellon embraces crypto venture as Bitcoin climbs to new record high

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New York's BNY Mellon embraces crypto venture as Bitcoin climbs to new record high

On Thursday, Bitcoin, the original cryptocurrency and the largest digital asset across the globe by market valuation, jumped as much as 8 per cent to hit an all-time record high after a New York-headquartered corporate investment banking company BNY Mellon, founded back in the 2007s through a merger of The Bank of New York and Mellon Financial Corp., had said that the American lender having had $2 trillion worth of assets under management, would create a new entity which in effect would enable its clients to hold, transfer and issue digital assets, remarking a landfall of a new era as bitcoin finally sets its footprints into mainstream after long being eschewed by conventional financial entities.

On top of that, the New York-based investment banking services provider had also added that it had been expecting to kickstart its new entity later this year. Unsurprisingly, followed by the announcement, Bitcoin, which had gained 66 per cent thus far this year and a whopping 1,200 per cent since mid-March 2020, raced to a new record trough of $48,481.45 earlier on Thursday, however was last trading 6.9 per cent higher to $47,932.

Bitcoin jumps to new record high as the digital asset finally enters mainstream

In tandem, latest announcement from BNY Mellon came forth just days after Elon Musk’s e-vehicle industry trailblazer Tesla Inc. had issued a statement saying it had invested an eye-propping $1.5 billion in bitcoin and was mulling an option to accept bitcoin as a payment method for its units alongside related services.

Besides, on Wednesday, a spokesperson for the credit card behemoth Mastercard Inc. was quoted saying that the company was looking to proffer trading supports for some of the crypto assets at its network as early as by this year.

Nonetheless, a flurry of fund managers advised extreme caution against the latest leg of Bitcoin-buying frenzy, while Chief Executive of a cryptocurrency consortium, Panxora Group, Gavin Smith said late in the day, “Investors must remember that bitcoin is not a simple, get-rich-scheme.

In reality, it has been, and will continue to be, susceptible to downward price swings – especially when the short-term winners look to withdraw their earnings”.