Bitcoin Stable As Big Players Enter the Digital Currency Sector
- Bitcoin rallies 5% as BlackRock reportedly weighs crypto venture
Bitcoin opened higher, climbing as much nearly 6%, following reports that the world’s largest asset manager was considering a push into the digital-currency market.
Monday, it was reported that BlackRock (NYSE:BLK), which has more than $6-T under management, has put together a Team to explore potential investments in digital currencies and blockchain, the underlying technology that drives cryptocurrencies.
The major cryptocurrencies have stabilized after a Fibo correction, and move by BlackRock and Goldman Sachs are major positives for investors in the sector.
While the asset management firm may be exploring ways to get exposure to the nascent technology, BlackRock’s CEO Larry Fink said he hasn’t seen the enthusiasm from the client side. “I don’t believe any client has sought out crypto exposure,” Mr. Fink said on TV Monday.
The news drove up the price of Bitcoin
Currently, Bitcoin is trading at 6,729.9849, +359.80, or +5.65%, as of 3:56a BST, the market is open.
The Commodity Futures Trading Commission (CFTC) issued a customer advisory to investors who are entertaining the thought of investing in virtual coins and tokens. It is the 4th advisory from the regulatory body.
Among others, the CFTC listed factors such as the potential for a fork, changing mining costs, hacking and liquidity that investors should consider before allocating capital.
“This advisory is part of the CFTC’s education and outreach efforts to help educate and inform market participants, who, given the pace of technology-driven change, will increasingly come in contact with new financial products and services,” said the Director of the Office of Public Affairs and Office of Customer Education and Outreach in a press release.
Bitcoin has driven other CCs higher, as the value of all cryptocurrencies have increased $13-B to $269-B, according to data from CoinMarketCap.
- Ether ETHUSD, +0.65% the coin that runs on the Ethereum network, is up 5.1% at $475.52,
- Bitcoin Cash BCHUSD, +0.43% has gained 9.6% to $795.10,
- Litecoin LTCUSD, +1.69% is up 4.8% at $82.94 and
- Ripple’s XRP XRPUSD, +2.26% coin is trading at 47x, up 5.2%.
Bitcoin futures have outperformed. The Cboe July Bitcoin futures contractXBTN8, +0.97% finished Monday up 7.2% at $6,670, while the CME July contract BTCN8, +0.82% closed up 8.3% at $6,675.
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