• Swiss National Bank (SNB) is interested in buying Bitcoin.
• Bitcoin price has dropped 33% since April last year to trade around $28k.
• Publicly traded companies have been slowly adding Bitcoin among other crypto assets to their balance sheet.
Swiss National Bank Interested in Buying BTC
The Swiss National Bank (SNB) recently expressed its interest in buying Bitcoin. This news comes amid a drop in the price of BTC, which is currently trading at around $28,000 – a 33 percent decrease from April 2020. Despite this decline, the cryptocurrency market has still managed to attract institutional investors due to its superior performance compared to traditional markets such as the Dow Jones and gold.
Public Companies Adding Crypto Assets to Balance Sheets
Data from TradingView shows that Bitcoin prices are up 70 percent year-to-date, while gold has gained 9 percent and the Dow Jones only 1 percent since January. As a result, numerous publicly traded companies have started adding crypto assets such as Bitcoin to their balance sheets. According Coingecko, these companies hold a total of 174,374 Bitcoins with MicroStrategy Inc having the largest share at 129,699 Bitcoins worth approximately $3.6 billion. Other major players include Coinbase Global and Marathon Digital who are both involved in crypto mining activities.
Swiss Banks Exploring Cryptocurrency Services
Due to recent issues in the banking system such as Credit Suisse’s collapse which was taken over by UBS under government watch, Swiss banks are exploring ways to incorporate cryptocurrency services for their customers‘ benefit. PostFinance – Switzerland’s fifth-largest financial services company – is set to offer cryptocurrency services through a partnership with Sygnum Bank for its 2.69 million customers worldwide..
SNB Vice President on Bitcoin
In an interview last week on TV, SNB Vice President Martin Schlege commented that he finds bitcoin „very interesting“. His statement further adds credibility towards cryptocurrencies being adopted more widely by traditional financial institutions and could potentially lead to higher demand for BTC overall if it gets added as a reserve currency on SNB’s balance sheet.
Overall, this news will be positive for the cryptocurrency industry as it signals increasing acceptance by mainstream banks and investors alike despite regulatory constraints that remain in place globally when it comes incorporating digital assets into traditional finance systems