Bitcoin Stays Close to $70K Amid Rising Institutional Adoption
Bitcoin is currently trading around the $70,000 mark. The Kansas City Fed has granted approval to Kraken Financial, a Special Purpose Depository Institution chartered in Wyoming, for a limited-purpose Federal Reserve master account as of March 4. The duration is set at one year. Access is restricted. However, the symbolism is difficult to overlook. Arjun Sethi shared with Fortune that the company opted for a Special Purpose Depository Institution charter through Wyoming, steering clear of the OCC route that other crypto firms have pursued. Jonathan Jachym shared that the approval is “a great testament to regulatory rigor and cooperation,” further stating that it “promotes principles of both safety and soundness, and innovation.” With this account, Kraken can maintain balances directly at the Federal Reserve and conduct settlements in U.S. dollars via Fedwire, effectively circumventing the correspondent banks that have been a staple for crypto companies for years. The response on X was mixed, with some expressing dissatisfaction. “ICBA and 42 state banking associations have raised concerns regarding the Federal Reserve Bank of Kansas City’s decision to approve a master account for Kraken Financial,” the Independent Community Bankers of America stated on their official account.
Representative Maxine Waters called on the Kansas City Fed to clarify its legal authority regarding the decision. Source highlighted the skeptics’ perspective: “Kraken’s Fed approval… isn’t pure adoption; it’s assimilation. Don’t confuse integration with decentralization.” The latest update from Kraken arrives as institutional investments are once again making their way into bitcoin. Spot bitcoin ETFs attracted $789 million last week, marking the highest weekly influx since February. BlackRock remains at the forefront of those flows. Charles Schwab, catering to approximately 39 million brokerage clients, has recently unveiled a risk-sizing framework indicating that an aggressive portfolio model might allocate as much as 8.8% to bitcoin based on specific return assumptions. Schwab refrained from labeling it a recommendation, yet the signal garnered significant attention throughout crypto X. Pete Rizzo shared that “$11 trillion Schwab just told 40 million clients to add bitcoin to their portfolios,” a statement that garnered over 2,000 likes despite exaggerating Schwab’s actual message.
Kevin Olsen examined the Kraken approval in a recent video. He forecasted that this is “merely the first of many approvals, signaling a permanent shift in how electronic banking and crypto institutions interact with sovereign financial rails.” Bitcoin has seen an increase of approximately 3% this week, fluctuating between $70,300 and $73,200. The $75,000 level is the next significant test. Pierre Rochard stated on X: “No four-year halving cycle has ever had a consistent bid from institutional and sovereign wealth quite like what we’re seeing in 2026.” His argument posits that the traditional four-year boom-bust cycle is undergoing a transformation, as institutions have transitioned from being temporary participants to becoming permanent buyers. The data supports his claims. Morgan Stanley has officially rolled out its low-fee bitcoin ETF as of April 8, with a competitive fee structure of only 0.14%. “Morgan Stanley just handed Bitcoin to 16,000 wealth advisors managing $6.2 trillion in client assets,” posted Garry Krug. “Their suggested allocation for growth portfolios stands at: 2-4%.”
Wall Street’s price targets for the end of 2026 are piling up. Standard Chartered’s Geoff Kendrick has set the target at $100,000. TD Cowen has set a target of $140,000 linked to bitcoin treasury companies. Bernstein is currently valued at $150,000. Tom Lee has proposed a price range of $200,000 to $250,000. The approval of Kraken directly supports each of these theses by eliminating a layer of friction that exists between institutional capital and the crypto ecosystem. The one-year term on Kraken’s account reveals a significant insight. The Fed is approaching this situation as an experiment rather than a final decision.TD Cowen has reduced its Strategy price target by 20.5% to $350, forecasting that the company’s Bitcoin gains will decrease to $7.87 billion in 2026 from $10.17 billion in 2025,” as reported. That is the same TD Cowen with a $140,000 bitcoin target reducing its stake in the largest corporate bitcoin holder. Conflicting indicators, to put it mildly. There are dissenting voices on X regarding the institutional narrative as well. “Expecting under $50K by November 2026,” one trader posted, contending that short-term rallies to $80,000 or $90,000 will ultimately lead to a more significant correction. Another source set their year-end target at $52,500, referencing historical pattern analysis.
Next, we must consider the political risk. Waters’ investigation may pave the way for new legislation that would limit crypto companies’ access to Fed payment systems. The ICBA is backed by 42 state banking associations in its opposition. If Congress decides to shut down Kraken’s experiment, the bullish narrative could change dramatically in an instant. The pivotal inquiry is whether Kraken will remain solitary or if other companies will join in its footsteps. Jachym stated that the approval demonstrates a clear regulatory path for any well-capitalized digital asset company ready to navigate the process. Bitcoin is currently positioned at $70,000, facing a significant resistance level at $75,000 above. A breakthrough on heavy volume, coupled with ongoing ETF inflows and additional broker launches such as Morgan Stanley’s MSBT, would serve as the technical confirmation needed to shift Wall Street’s $100,000-plus targets from mere speculation to a consensus view.
