Bitcoin is back with a bang trading above $7400 with the good news of growing institutional involvement in the crypto space.
After a long time, there is some pretty good news for Bitcoin and crypto enthusiasts as the world’s largest cryptocurrency by market cap has posted 11% gain smashing past the $7400 mark. At the press time, Bitcoin is trading at $7455.46, according to the data on CoinMarketCap. This is for the first time in the last one month that Bitcoin has crossed the crucial resistance of $7000.
And as it always happens, the rise in the Bitcoin price has brought an overall cheer to the cryptocurrency market. All other major altcoins like Ether, XRP, Litecoin, and Bitcoin Cash have surged in between 5-10%. The overall cryptocurrency market valuations have grown by nearly 5% as the market has added more than $25 billion in the last 24-hours. At the press time, the overall cryptocurrency market valuations stand at $297 billion, as per the data on CoinMarketCap.
Multiple Reasons Behind The Latest Bitcoin Euphoria
There are numerous reasons over the past few days which have contributed towards the latest euphoria in Bitcoin and the overall cryptocurrency market. Some positive news from the institutional space has swept the crypto market.
World’s largest asset management giant with over $6.3 trillion valuation – BlackRock is planning to dig in the cryptocurrency space. As per the latest reports, BlackRock is currently investigating the crypto market. The company is exploring several ways as to how it can venture into different crypto investment vehicles like Bitcoin futures and others.
A BlackRock spokesperson said:
“Like most financial institutions, BlackRock has a working group that meets periodically to exchange information on blockchain and consists of employees from various parts of the business.”
While commenting on this report of BlackRock looking into the crypto space, Chris Yoo, portfolio manager at Black Square Capital said:
“BlackRock exploring crypto assets comes as no surprise and is definitely a positive development for the crypto market. As the largest asset manager in the world, its interest in crypto assets could be a catalyst for upward price movement and encourage other asset managers, even with more conservative strategies, to seriously explore investing in the crypto space.”
Last week Fortune reported that billionaire investor and founder of asset management company Point72 – Steven Cohen is planning to join the crypto party very soon. As per the reports Cohen is planning to invest in crypto hedge fund Autonomous Partners. The report also states that the investment in the crypto hedge fund will be coming through Cohen’s private investment vehicle, Cohen Private Ventures.
Another vital news yesterday was that the G20 advisory board – The Financial Stability Board has released a framework for monitoring the crypto authorities. The G20 has concluded that cryptocurrencies don’t pose a substantial risk to the global financial markets, currently. This has certainly created some optimism in the crypto market which was hit with FUD relating to crypto regulations for a long time. However, the G20 said that they would monitor all the developments taking place in the cryptocurrency industry.
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