Bitcoin after struggling all throughout the weekend has come out on Monday with some real hard punches. Before struggling with the $6,200 price drag that began on Thursday of last week, bitcoin has been steadily hanging around $6,300 for the last couple of weeks until the fateful Thursday when it got a sucker punch that pushed it to $6,190 before sitting steadily at $6,200 for the rest of the week.
After steadily crawling its way back to $6,300 on Sunday, the crypto has proven its made of even much more by going further to $6,600. Like usual other crypto enjoyed this price rally with most enjoying a 3% to 10% price increase.
Before the price fall on Thursday, the crypto had shown potential of hitting $7,000 as it rallied all the way to $6,800 on Monday, however, this would be reversed from a prospect of hitting 7K to a fear of going below 6K.
Is BlackRock’s Change Of Heart Pushing The Price
A few days ago, Steven Cohen announced that he was getting into the crypto market through a hedge fund called Autonomous Partners, the hedge fund’s entry to the market with its access to at least $3 billion in asset managed, came as big news to the crypto community.
This has however been dwarfed by the news that BlackRock is considering to get into the crypto community. BlackRock, represents the world’s 10th largest hedge fund by assets under management (AUD) which is around $28.6 billion.
After reports emerged that the American company was exploring how it could take advantage of the crypto market, bitcoin prices surged from $6,300 to $6,600 which represents a 4% price increase. Other currencies such as Ethereum and Ripple also enjoyed a price surge that saw them gain by 4% to 5% each.
BlackRock has reportedly set up a team which has been mandated with exploring all the ways that BlackRock could take advantage of the crypto market as well as blockchain technology.
Although this has been news to many of the crypto community, CNBC has reportedly found out that this is not a new concept within the company. According to CNBC, the working team looking into the crypto community has actually been existence since 2015. In an email to CNBC, the company’s spokesperson said;
“We have been looking at blockchain technology for several years, recognizing potential for shared processes and data across market participants, clearing, settlement and reconciliation and simplified securities issuance”
One of the key aspects of the report that led to the spike was the companies reported interest in buying bitcoins. According to sources, the company is weighing if to invest in the virtual currency all while keeping tabs of what its competitors is doing in regards to cryptocurrencies and blockchain technology.
Like most financial institutions, BlackRock has recognized that cryptocurrencies are a force to reckon with and better to get in on it early on and become leaders in the industry.
Although the market is still faced by major challenges such as volatility, regulations and security, major financial institutions such as BlackRock, Autonomous Partners and Fidelity insurance who announced last month that they were going to set up a crypto exchange, continues to help build confidence into investors hearts and indeed the market itself.