At press time, arguably the most popular and definitely the most valuable cryptocurrency in the world is standing at $7,672 after a week of solid growth. The momentum has been identified by many as the start of one of the most powerful bull runs ever made in the history of Bitcoin, as well as all cryptocurrencies. The cryptocurrency took an abrupt decline to the $7,400 mark on Sunday, but to all Bitcoin holders’ relief, the cryptocurrency is back on track. The momentum has most probably been spawned by an array of encouraging headlines that have turned the market sentiment within a week after half a year of mostly negative performance.
The largest cryptocurrency based on market capitalization took a hit of 3% during the weekend as the market was dragged down by a sharp selling session. But Bitcoin was able to quickly recover $300 on Monday after the reports published by Blackrock and Financial Stability Board. Blackrock is the world’s largest asset manager. The reports published by these organizations sent an extraordinarily encouraging signal that regulators and institutional investors are already making efforts to bring digital currencies side by side with mainstream finance.
A senior market analyst at eToro Matthew Greenspan tweeted that morning that this might be the beginning of the biggest bitcoin bull run in history. Romal Almazo, Cryptocurrency Lead at Capco told Express.co.uk that tier 1 financial institutions and banks are looking into options to bring cryptocurrency closer to mainstream finance. The statement was made on the recent headlines that are known to have played a major role in causing the traction in the crypto market.
Almazo explained that Blackrock’s report might have some foundation as the introduction of institutional money will be “a game changer.” He also reminded that the daily trading volume of the crypto market is still less than 1% of the FX market. According to Almazo, the impact of big players entering the market will cause a major stir in the market. However, he also says that we are currently witnessing an “exploratory phase” while the tipping point might occur a few years later.
Romal Almazo also pointed out to the fact that the tier 1 financial institutions and banks exploring the options of entering the market have two main deal breakers standing in front of them right now: the risks of digital custody and storage, and lack of regulatory supervision. This, according to Almazo, is another reason why insurers have a great opportunity in their hands to enter the market and sign deals with digital storage providers and digital custodians. Barry Silbert of Digital Currency Group said last week that he thinks that the Bitcoin has reached as low as it could this year and the bad days are over for the cryptocurrency. He also revealed that he himself had invested some money to buy Bitcoin last week.