As a reminder, BlackRock's recent presence in the digital asset industry has become quite prominent. In particular, the company also partnered with cryptocurrency exchange Coinbase a week ago. The deal gave the investment firm's clients the opportunity to invest in cryptocurrencies through its Alladin platform, which tapped into Coinbase Prime, a service for securely storing and trading digital assets.

Now the giant has gone a step further, making it possible for more investors to connect with cryptocurrencies.

Who invests in Bitcoin

The news has been received extremely positively in the cryptocurrency community. Moreover, many experts called it a starting point in a process that could potentially form the next global bull run, i.e. a massive growth phase for digital assets. Here’s how Blockware’s chief cryptocurrency analyst William Clemente commented on the event.

A final comment on the matter: I think the news of BlackRock are the most bullish in history for long-term Bitcoin holders. Not just the news itself, but the fact that for some it signals the readiness of the crypto market for particularly large investments, and for others it is an incentive to offer BTC to their clients so as not to lose out among competitors.

In other words, because of what is happening, other investment companies will want to get in touch with digital assets and create an environment for their clients to interact with them. And this could happen even if the executives of the companies in question do not particularly share the ideals of decentralisation and do not believe in blockchain technology. In this case, we would be talking about the prospect of losing customers - something that is unlikely to happen, even in spite of their beliefs. So, given what's going on, the prospects for further popularization of Bitcoin and other coins have become noticeably greater.

BlackRock

According to Cointelegraph sources, as recently as five years ago, BlackRock CEO Larry Fink referred to Bitcoin as a “money laundering index”. However, he has clearly changed his mind by 2020 and said that crypto could well become a “global market”. Now, however, BlacRock is officially opening its doors to institutions interested in crypto.

Here’s a quote from the firm’s announcement on the matter, cited by Decrypt.

The trust is available to US institutional clients and aims to track Bitcoin price movements net of the trust’s expenses and liabilities. Despite the sharp downturn in the digital asset market, we continue to see significant interest from some institutional clients in how to access these assets efficiently and cost-effectively using our technology and product capabilities.

BlackRock CEO Larry Fink

Another important detail: in a press release, the firm said it was inspired by a plan to “decarbonise cryptocurrencies” developed by non-profit organisations Energy Web of Switzerland and RMI, based in the US. This is an important point for institutional investors, who have previously worried about the environmental impact of BTC mining. That said, concerns were once raised by Tesla’s refusal to accept BTC as payment for its electric cars.

The price of Bitcoin has jumped by almost a thousand dollars since August 10. The chart below shows the development of the main cryptocurrency over the previous few days.

Bitcoin’s hourly chart

So what can we expect from the BTC chart in the near future? Analysts at the Whalemap platform have noted several important levels. At the moment, Bitcoin is forming a so-called “rising triangle” pattern, against which the cryptocurrency is promised growth prospects up to $27,000. The next more optimistic target is $29,000.

Bitcoin chart by Whalemap

It should be noted that the technical analysis is based on events from the past and does not guarantee the development of the situation in a certain way. Therefore, you should not rely on it as the only possible market movement - it is just a probability.

Certainly, the presence of the largest investment firm in the crypto market will push it into the bullpen, as even the amount of assets under management at BlackRock exceeds the $10 trillion mark. By comparison, the entire crypto market is now capitalised at $1.18 trillion. However, the news itself does not guarantee immediate niche growth – it is possible that it will first be followed by a smooth completion of the BTC accumulation phase, which may be replaced by gradual growth.


We believe that the presence of a giant like BlackRock in the cryptocurrency industry, as well as its willingness to open up access to coins to other investors, is a crucial achievement for the current bear market. The situation shows that professionals are in a position to consider the prospects for the decentralised asset market even after it has experienced an 80-90 per cent collapse from its peak. And so there is little doubt among experts about the further growth phase either.


What do you think about this? Share your opinion in our millionaires cryptochat. There we will discuss other important news related to the world of blockchain.