This is Why Cryptocurrencies are Suddenly Pulling Back

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Bitcoin is pulling back from historic highs.

After hitting new all-time highs of $41,504, BTC just fell to $31,532.

A good deal of the pullback is courtesy of U.S. Treasury Secretary Janet Yellen, who warned cryptocurrencies are being used “mainly for illicit financing,” as quoted by CNBC. She added, she would ““need to examine ways in which we can curtail their use and make sure that money laundering doesn’t occur through those channel.”

However, don’t let the news chase you from Bitcoin.

A good deal of institutions believe it could see higher highs.

For one, CNBC reports that BlackRock filed prospectuses for two funds that could buy BTC futures contracts. That’s a big sign that institutions are very interested in cryptocurrencies.

According to Skyridge Capital, we could see a “tidal wave of institutional capital,” as noted by Bitcoinist. In fact, the firm says the cryptocurrency could see maturation as an asset class, and attract hedge funds, public company treasurers, insurance companies, pension funds, RIAs, banks, brokerage houses, and even a potential Bitcoin ETF.

Better, Citibank for example says we could see $318,000 BTC in 2021. Guggenheim is calling for a valuation of $400,000. Now, even Goldman Sachs, JP Morgan, and Citi are all reportedly looking into crypto custody, as noted by CoinDesk. “Like JPMorgan, we have issued an RFI looking at digital custody. We are broadly exploring digital custody and deciding what the next step is,” said a Goldman source, as also quoted by CoinDesk.

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