Those who have invested in Bitcoin recently are starting to break into a broad smile as the price of Bitcoin seems to be heading on a steady upwards curve. Ever since the crazy spikes of late December and early January, there have been fears that Bitcoin might be on a steady decline. There have been signs, though, that there could be life in the coin yet.
Those who invested in Bitcoin at an all-time high price won’t really care about its recent insignificant ups, but the coin has really shown signs of recovery. One of the reasons for that has been the restored investor confidence in the market after BlackRock showed interest in cryptocurrency. BlackRock is the world’s biggest asset management company, so it is a huge deal not only for the coin but the industry as a whole.
BlackRock doesn’t want to be left behind if any of their competitors invest in cryptocurrency, thus they are aiming to get ahead of the queue. However, Bitcoin wasn’t the only currency to get a spike in price from the announcement, as both XRP and Ethereum were boosted by the news as well.
Previously, big investment and asset management firms were very sceptical of cryptocurrency and the value of it due to its volatility and use for criminal activities like money laundering. This increase in acceptance, though, is a positive sign for both Bitcoin and the industry as it improves the public image of cryptocurrency.
The upcoming launch of Bitcoin ETFs is creating some excitement among investors and could well be the reason that Bitcoin is on the rise. The ETF (exchange-traded fund) is hoping to become a secure gateway for institutional investors and provide a solution to those who are hesitant to use an online exchange. It would enable people to buy Bitcoin effortlessly and make cryptocurrency a lot more accessible.
The catch here is that it needs to be approved by the Securities and Exchange Commission (SEC), and regulation has never really seen eye-to-eye with the crypto world. It seems though that the SEC is going to approve this. The approval of ETFs would be a huge boost for those who own Bitcoin, as well as those who are looking to invest in it, due to the added ease that will come with it.
ETFs would add more transparency to trading, which is something that cryptocurrency has a difficult relationship with, as well as offer a level of insurance which currently can’t be found on the exchanges.
Cryptocurrency was always going to rise as it got more accepted. In many ways, the industry is still recovering from the crazy couple of months it had in December and January, where all the big coins had huge spikes and dramatic falls. It feels like we’re starting to see a more realistic vision for the future of cryptocurrency, and the fact that Bitcoin has been rising again is a great sign.
Those two big bits of news coming from BlackRock and the Bitcoin ETFs could provoke many large companies and firms into investing in the market and provide an ever-increasing number of ways that people can access the currency.
However, it’s important to note that neither of those two things has actually happened yet. BlackRock hasn’t invested in cryptocurrency and the ETF has not been approved yet. If both of those probabilities come to life, then there is a great chance that there will be another spike in Bitcoin’s price and the crypto market might grow even further. If Bitcoin has bounced on the back of this news, then it could continue increasing as similar stories are to happen.
The simple answer to this is nobody knows. There are sure to be challenges ahead, which will negatively affect the price of Bitcoin. Bitcoin’s biggest threat in the future might not be the industry transformation itself but the coins that are aiming to catch it up.
While the acceptance of the whole market grows, it might be the case that investors are turned away from Bitcoin to other cryptocurrencies, which offer better solutions, such as lower transaction fees or smart contracts. The future of Bitcoin will be very hard to predict, and with more news stories popping up, there will be plenty of challenges too.
For now, though, Bitcoin is on the rise and the future looks good. There are going to be more big firms putting their money into the coin and it’s going to become easier than ever to buy and trade Bitcoin as well. After many months of uncertainty, it seems that investors are breathing a sigh of relief now.