In part because of its limited supply and the fact it is a decentralized currency, Bitcoin (BTC), like other cryptocurrencies, can be extremely volatile. BTC prices dropped by around 5 percent in successive days on August 2 and 3, 2021, after a near 20 percent rally the week prior, at which point it reached $42,605—its highest price since May. While the cryptocurrency market has faced increased scrutiny in recent months, there have been many positive developments and headlines suggesting further price increases.
Despite recent volatility, BTC is up nearly 250 percent from last year. Dan Morehead, an early BTC investor and the founder of the $2.8 billion crypto-focused fund Pantera Capital, expects the price of the popular cryptocurrency to increase by as much as 1,500 percent over the next 10 years.
Speaking to Yahoo Finance, Morehead cited a Pantera Capital study involving a pair of data series to suggest the price of BTC could reach $700,000 by 2031, at which point he believes it will be used by everyone with a smartphone.
“I think the macro story is so positive, there is so much money being printed and so many institutions are coming into the space that over the next twelve months the markets are going to resume their rally,” Morehead added.
NCR Corporation’s announcement that it plans to acquire LibertyX, a BTC ATM software provider, is another positive sign for BTC and its widespread adoption. NCR announced the deal on August 2, stating it acquired the company to support crypto payments and cross-border payments.
LibertyX’s proprietary crypto payment technology is used by nearly 10,000 ATMs and at 20,000 retailers in the United States. NCR’s acquisition of the company will allow this technology to be offered at financial institutions and businesses such as restaurants and brick-and-mortar retail stores. Walmart utilizes NCR’s payment infrastructure, although NCR has yet to announce which businesses will use these new crypto capabilities. NCR’s shares increased 1.5 percent in the trading session immediately following the announcement.
As of August 2021, wealthy clients with Wells Fargo can receive BTC and altcoin exposure through the historically conservative investment bank. This news was confirmed just over a week after BNY Mellon stated in July it would support six other major banks in launching the cryptocurrency exchange Pure Digital.
Bitcoin Magazine reported in May that Wells Fargo Wealth and Investment Management, which oversees roughly $2 trillion in assets, planned on implementing a BTC and crypto strategy. Wells Fargo has been uncertain of cryptocurrency in the past, but research division president Darrell Cronk recently indicated that BTC’s inflated market cap and the advancement of altcoins have lent legitimacy to crypto. He told Business Insider that he sees BTC as an “alternative investment” as opposed to a “strategic allocation.”