GB Market Commentary 24/05/2022
by Marcus Sotiriou
Global markets and crypto rallied yesterday, before Bitcoin plunged and decoupled from equities in the opposite direction to which crypto bulls would like. Snapchat fell 28% after earnings yesterday, causing additional panic in the markets leading to the Nasdaq in particular selling off. There is little to report on the Bitcoin chart. Since the drop to $25,500, Bitcoin has been in a range between around $28,000 and $31,300.
Bitcoin adoption globally continues to grow as a major financial institution in Japan, Sumitomo Mitsui Trust Bank, has entered the cryptocurrency custody business. They will work with Bitbank, a Tokyo-based cryptocurrency exchange, to launch a digital assets custody company called Japan Digital Asset Trust. This will provide custody of crypto and NFTs to institutional customers, hence aiming to solve the issue of custody, which is a deterrent for many institutions. Nomura, a Japanese Investment Bank, is also considering launching a similar service to its customers. This shows how the crypto industry’s infrastructure continues to improve and receive support from institutions, as they rush to become involved in the space.
Designer and maker of luxury timepieces, TAG Heuer, is now accepting crypto for its high-quality products. TAG said yesterday that clients within the U.S. will be able to purchase its watches and accessories online with multiple coins.
TAG CEO said, “With an increasing number of customers using or earning digital currencies regularly, TAG Heuer intends to be a key player in the imminent transformation of the e-commerce and retail spaces. As an avant-garde watchmaker with an innovative spirit, we knew TAG Heuer would adopt what promises to be a globally integrated technology soon despite the fluctuations.”
This, along with Balenciaga and Gucci beginning to accept crypto as payment, shows how crypto is stepping closer to mainstream acceptance as a payment method.