Published 19 Jul by CryptoDiffer Team

Highlights on DataDash

"BlackRock Wants In On Cryptocurrency"


The market evolves and opens up for an even larger audience and liquidity. We finally saw a serious price increase, accompanied by good volumes, which was not observed for a long time. Over the past two days, the price of Bitcoin has risen by ~ $ 1,000. Perhaps this is the best price reaction since April of this year when Bitcoin soared from ~ $ 6,000 to ~ $ 10,000. In this regard, many hope that the BTC will test the line of the inclined resistance and will reach $ 10,000, and maybe even higher.

Certainly, it creates an opportunity to repeat what happened in 2013 and in 2014, when the price was adjusted and the BTC returned to the peaks of the previous rebound after retaining support. We can see, as the subsequent correction (as in 2014), and the continued growth to very high rates (if ETF will be announced in the coming months).

The daily trading volume grew more than 2 times compared with the previous period. We again returned to $ 20 billion.

BlackRock reviews futures and ETF on Bitcoin

For a long time, there were talks that the world famous BlackRock not only considers Bitcoin futures, but also enters the crypto-currency market. This is rather ironic, considering that being a large financial institution, BlackRock, like its colleagues in the market, had a negative opinion about Bitcoin and cryptocurrencies in general. Earlier, they said that Bitcoin is only suitable for "money laundering".

So why did BlackRock change their minds?

BlackRock is the largest provider of fixed income in the financial market, most of the assets in the amount of 6.3 trillion. dollars are futures and ETF.

This speaks not only of the huge potential that BlackRock will easily launch Bitcoin futures and, thus, attract more liquidity to cryptomarket. But, also, and that BlackRock in the future can apply for ETF on Bitcoin.

No one knows for sure, but when we see that companies like BlackRock and CBOE, CME and Nasdaq are not just talking about plans for entering cryptomarket, we see a paradigm shift in the thinking of the traditional financial market in relation to cryptocurrencies. However much JP Morgan companies try to present the crypto-environment in a negative light, the money still goes to this market and from the point of view of business, the institutionalists will have to take this into account. They can act smartly and create an infrastructure for their own financial products.

At the same time, traditional markets such as QQQ, SPY, SNP500 are overbought. Now there is no simple monetary policy, as before and financial regulators know about it. When interest rates rise, you should expect a correction in the market. This will lead to a decrease in trade volumes and long-term revenues, as a result of which traditional companies will have to look for new ways to continue operating in a bear market.

It is also important to note that the interest of financial companies of the first echelon to crypto-currencies has an impact on financial regulators. This shows them that the cryptomarket is growing, ripen and that people want to enter it.

Source (RUS)