Fidelity said on the same day that it would begin accepting bitcoin investments in its 401(k) accounts. Later this year that the CEO of the company, Michael Saylor, took to Twitter to make the announcement.
To become the first public firm to offer their workers the choice to invest in bitcoin as part of their 401(k) program. MicroStrategy looks forward to collaborating with Fidelity Digital Assets, Saylor tweeted.
Fidelity announced earlier this year that it would offer a bitcoin investing option to companies using its retirement savings rails. One of the largest 401(k) providers, Fidelity works with 23,000 corporations. The move is a further indicator that bitcoin is becoming more accepted as a currency. But it’s not a safe option for the faint of heart because of the cryptocurrency’s dramatic price swings.
Bitcoin acquisition approach has made MicroStrategy a household name. The business just purchased 4,157 BTC for around $190.5 million, raising its total holdings to 129,218 bitcoins, or $5.1 billion. By press time, neither MicroStrategy nor Fidelity had responded to requests for further information.
Bitcoin and Other Cryptos Market Wrap
Cryptocurrency traders’ moods are still unsure. On Tuesday, the majority of cryptocurrencies continued their downward trend, following stock market drops.
Trading in Bitcoin (BTC) has been slowing down for the past two weeks. As investors watch for a breakout over or below the $40,000 mark. Altcoins have fluctuated in popularity during the last month, a sign of market insecurity.
During the last 24 hours, Dogecoin (DOGE) lost 8 percent of its gains after Monday’s rise. Another dog-themed meme coin, Shiba Inu’s SHIB, saw a 4 percent drop. Bitcoin, on the other hand, fell by 3% on Tuesday. And has now fallen by 18% in the last 30 days.
The stock market fell on Tuesday as well, erasing nearly all of the gains made in late March. Since the beginning of the year, investors have taken a more cautious approach to the stock and cryptocurrency markets. US dollar is nearing a one-year high, which has hampered the price of BTC.
Bitcoin’s Unknown Direction
Most observers think bitcoin’s price will fluctuate, but the direction is unknown. Some indicators lead to a breakdown, while others point to a price comeback. The options market currently expects BTC to trade above $36,000 in May. The average daily basis, or the difference between the spot and futures prices, for bitcoin futures fell to a year low. A rising basis typically signals bullish futures traders.
This year’s base has only hit similar lows twice: in July, before the summer short squeeze, and in February. “The market bottomed in July, whereas BTC continued to consolidate after the February low,” Arcane Research reported on Tuesday.
There are also indicators of increased futures trading activity. “Open interest in BTC perpetuals has risen to a year high, after progressively increasing since early March,” Arcane said. The futures market has been slightly pessimistic, increasing the risk of a short squeeze if BTC surges abruptly.