At the moment, the price of bitcoin, ethereum, and other significant cryptocurrencies is trading considerably below their all-time highs. Yet, one powerful investor who predicted the Covid pandemic believes that might soon change.
Due to traders’ anticipation of a likely Federal Reserve policy reversal, the price of bitcoin has increased by around 70% since the start of the year, supporting the upward trend in the price of ethereum.
Fidelity and BlackRock, two of the largest financial institutions in the world with a combined $14 trillion in assets under management, are subtly expanding into the world of bitcoin, ethereum, and cryptocurrency. This is happening in the midst of the brutal crypto winter that has wiped out almost $2 trillion in market value.
According to Larry Fink, CEO of the largest asset manager in the world, very interesting developments are happening in the digital asset space, and at BlackRock they continue to explore the digital assets ecosystem, especially areas most relevant to the clients, like permissioned blockchains and tokenization of stocks and bonds.
After concluding a significant agreement with bitcoin and cryptocurrency exchange Coinbase last year, Fink said blockchain technology in cryptocurrencies will usher in the next generation for markets.
Fidelity Investments has now allowed its 37 million members to purchase and sell bitcoin and ethereum on its cryptocurrency trading platform commission-free.
The bitcoin and cryptocurrency market has historically moved in cycles, rising sharply before plummeting and then rising sharply once more.
A few observers of the bitcoin, ethereum, and cryptocurrency markets are pointing to the next bitcoin halving, when the rate at which new bitcoin are issued will be cut in half, as a potential stimulus for the following bull run in bitcoin prices.
The subsequent halving of bitcoin will occur in around a year, according to Alex Thorn, head of research at Galaxy. These have historically been positive developments for the digital asset.
In late April 2024, there will be another halving of the value of bitcoin, which will reduce the block reward given to miners from 6.2 to 3.1 bitcoin.
