Deutsche Bank crypto move boosts Bitcoin to June high

Category: Blockchain Crypto
Posted by
Aleksandar Simonovic

By obtaining this license, the European banking giant will be able to provide secure storage for cryptocurrencies and other digital assets. The custody services involve safeguarding private keys for accessing and transferring digital assets using highly secure offline or online storage solutions.

We’re building out our digital assets and custody business. We just put our application into the Bafin for the digital asset license,” said David Lynne, head of Deutsche Bank’s commercial banking arm.

The bank had initially shared its plans to become a crypto custody provider in late 2020, but no specifics were disclosed about a potential timeline until now.

The move follows the bank’s asset management arm, DWS, announcing a partnership with U.S.-based Galaxy Digital to launch exchange-traded products for digital assets last April.

Deutsche Bank’s license application announcement followed similar developments in the past week, including applications for cryptocurrency exchange-traded funds (ETFs) from BlackRock and Fidelity Investments.

Experts analysis

June 20 saw the BTC/USD pair surging up to $27,499 as listed on Bitstamp, the highest level since May 31. The Wall Street reopening might have a role in boosting its performance, resulting in an approximately 4.2 percent uptick compared to the previous day.

However, market participants refrained from labeling it a significant trend shift despite the notable surge, particularly on low-timeframe charts. Analysts remain cautious, awaiting the close of the weekly candle to assess market strength.

Trader and analyst Rekt Capital pointed out that confirming a daily breakout for BTC was challenging due to a blue Lower High diagonal resistance on the chart.

Because $BTC has failed so many post-breakout retests on the Daily timeframe here. Better to watch out for Weekly timeframe confirmation,” the analyst cautioned.

Rekt Capital also said on Twitter that Bitcoin would have a “good chance” of breaking out of its current downtrend if the strength holds until the weekly close. However, he reiterated that no substantial trend shift had occurred despite the excitement surrounding the recent price movement.

Fellow trader Crypto Tony is slightly more optimistic, predicting a return to $27,500 and highlighting the significance of the $27,100 level for the bulls to establish as support.

Given the recent regulatory actions taken against prominent exchanges in the U.S., some observers expressed suspicions regarding the timing of these new products and applications. Notably, asset management expert Larry Lepard highlighted the repeated rejections by U.S. regulators of the Grayscale Bitcoin Trust’s plans to convert into an ETF.

Meanwhile, Scott Melker, a trader known as “The Wolf of All Streets,” asserted that Bitcoin is entering the bullish era and emphasized that the intrusion of Wall Street into the cryptocurrency space would likely contribute to a price increase, regardless of personal opinions on the matter.

Now, BTC trades somewhere near $29,000. If the bullish trend stays, it may break its April 2023 high of $30,000.

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