Crypto news: BlackRock interested in crypto

10:55 16 August 2022

Cryptocurrencies have been weakening since the beginning of the week. Supply pushed Bitcoin and Ethereum prices south although both major projects managed to break the psychological boundary and climb above $25,000 and $2,000. Today Bitcoin costs $24,000, the bulls have been fighting the sellers for 2 days for further increases. Ethereum is slipping nearly 10% from its highs and costs $1880. Is the observed deceleration in growth just another stop in the climb of digital assets or a harbinger of the return of risk aversion?

  • Investment fund BlackRock has opened a trust buying Bitcoin from the markets on behalf of institutional investors. In addition, BlackRock CEO Larry Fink pointed out in an interview that interest in Bitcoin is huge, with the cryptocurrency market still narrow and young (just over $1 trillion in capitalization versus over $8 trillion in assets BlackRock manages). Fink cited that search results for Bitcoin on BlackRock are several hundred thousand versus a few thousand for phrases related to Covid or the Fed. The creation of a spot fund for institutions is BlackRock's next big step into cryptocurrencies after cryptocurrency exchange Coinbase recently signed a deal with the fund. Gaining 'attention and popilarity' among investors could potentially prove to be a solid foundation for building the next crypto market bull market;
  • The Ethereum blockchain difficulty bomb, according to data from Wenmerge, will explode on September 13, i.e. in about 27 days, dramatically reducing the supply of the cryptocurrency. The market was circulated with news of the transfer of nearly 145,000 ETH by one of the whale addresses, which became active less than a month before 'The Merge' after three years of inactivity. The transfer of such a large number of Ether may suggest that the whale will want to make token sales or, on the contrary, intends to become one of the network's validators and earn passive income from its tokens;
  • Blockchain Cardano according to its creator, Charles Hoskinson, is just before the implementation of the Vasil hard fork, which will improve the scalability of the network and 'unlock' opportunities for decentralized applications built on the network. Cardano has been the second most active blockchain after Bitcoin for some time, yesterday clearing more than $7.4 billion in transactions against Bitcoin's $13.41 billion in chains. However, this is still not reflected in the token's price, which has been consolidating between $0.51 and $0.58 for quite some time. More than 1,000 decentralized projects have already been built in the Cardano ecosystem;
  • Cryptocurrencies are becoming increasingly risky as their prices rise. While investors' hopes for a Fed pivot remain in play, and U.S. inflation may have peaked, markets are still unsure of the scenario that is playing out. Uncertainty is fueled by the approaching fall/winter season, weakness in China's economy and geopolitical tensions. All this means that supply may still be active and retreat from the market after 'relief rallies'. Traditionally, Michael Burry, a manager at Scion Capital, which gained popularity by earning hundreds of millions of dollars from the 2008-2009 sub-prime crisis, forecasts such a scenario for the indices with which cryptocurrencies correlate.

Bitcoin supply of cryptocurrency exchanges is still in an uptrend, having started as recently as March 2020. Investor demand for bonds is one of the reasons for the continued trend this year in which capital migrated away from risky assets to the 'safe haven'. Exchanges saw an outflow of nearly 100,000 bitcoin in May when Luna collapsed. This represents a more than 3.2% increase in total outflows since the March 2020 ATH.  Source: Glassnode

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

Long-term investors have traditionally tended to have more confidence in the potential of the assets they hold. Glassnode grants long-term investor status to addresses that do not sell for a minimum of 155 days, which takes us back to March 2022 and the unwinding that then resulted in a rally to the $46,000 area.  From the November 2021 ATH, LTH Supply points to 13.56 to about 13.27 million BTC, with a drop of only 300,000 BTC until the collapse of Luna, when another 150,000 BTC was sold by long-term addresses as a result of widespread fear in the market. Recent spending by LTH addresses is volumetrically higher than the period before the collapse of Luna, indicating a lack of desire to sell Bitcoin among long-term investors. Source: Glassnode

Today we see that the active supply chart is below the May 2022 ATH (around 65%). It shows that the conviction of buyers in May and July, following the migration of miners from China, is high in 2021. Stored by long-term addresses, Bitcoins are balancing supply, which confirms that the major cryptocurrency is recovering in a slump. Source: Glassnode

We can see the scale of the chart's volatility 'smile' looks different for September and different for October as the 'post Merge' period. The chart indicates lower demand in the Ethereum options market after the move to Proof of Stake i.e. the aforementioned 'Merge' event to be held on September 15. Equally importantly, the market expects higher volatility after the event, which confirms that investors are worried about the 'buy the rumors, sell the facts' scenario and are hedging against dips. It is worth noting, however, that the charts are built on the basis of currently available data, and institutional demand for Ether could turn the game around. Source: GlassnodeEthereum chart, D1 interval. The 200-session moving average on the daily interval could still provide significant resistance for bulls. The SMA 200 currently runs around $2250, demand may reach these levels before 'The Merge' to try to turn back the ETH downtrend. Previously, the average determined another cascading Ethereum sell-off, when the token's price bounced off $3500 in April. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol Expiration date 17 October 2024
adobe_unique_id Expiration date 16 October 2025
test_cookie Expiration date 1 March 2024
SESSID Expiration date 9 September 2022
__hssc Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024
intercom-id-iojaybix Expiration date 13 July 2025
intercom-session-iojaybix Expiration date 23 October 2024
xtbCookiesSettings Expiration date 16 October 2025
xtbLanguageSettings Expiration date 16 October 2025
TS5b68a4e1027
countryIsoCode
userPreviousBranchSymbol Expiration date 16 October 2025
TS5b68a4e1027
_cfuvid
intercom-device-id-iojaybix Expiration date 13 July 2025
__cfruid
__cf_bm Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024
_cfuvid
adobe_unique_id Expiration date 16 October 2025
TS5b68a4e1027
_cfuvid
xtbCookiesSettings Expiration date 16 October 2025
SERVERID
TS5b68a4e1027
__hssc Expiration date 16 October 2024
test_cookie Expiration date 1 March 2024
intercom-id-iojaybix Expiration date 13 July 2025
intercom-session-iojaybix Expiration date 23 October 2024
intercom-device-id-iojaybix Expiration date 13 July 2025
UserMatchHistory Expiration date 31 March 2024
__cf_bm Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid Expiration date 9 September 2022
_gat_UA-22576382-1 Expiration date 8 September 2022
_gat_UA-121192761-1 Expiration date 8 September 2022
_ga_CBPL72L2EC Expiration date 16 October 2026
_ga Expiration date 16 October 2026
AnalyticsSyncHistory Expiration date 8 October 2022
af_id Expiration date 31 March 2025
afUserId Expiration date 1 March 2026
af_id Expiration date 1 March 2026
AF_SYNC Expiration date 8 March 2024
__hstc Expiration date 14 April 2025
__hssrc
_vwo_uuid_v2 Expiration date 17 October 2025
_ga_TC79BEJ20L Expiration date 16 October 2026
_vwo_uuid Expiration date 16 October 2025
_vwo_ds Expiration date 15 November 2024
_vwo_sn Expiration date 16 October 2024
_vis_opt_s Expiration date 24 January 2025
_vis_opt_test_cookie
_ga Expiration date 16 October 2026
_ga_CBPL72L2EC Expiration date 16 October 2026
__hstc Expiration date 14 April 2025
__hssrc
_ga_TC79BEJ20L Expiration date 16 October 2026
af_id Expiration date 31 March 2025
afUserId Expiration date 1 March 2026
af_id Expiration date 1 March 2026
AF_SYNC Expiration date 8 March 2024
_gcl_au Expiration date 14 January 2025
AnalyticsSyncHistory Expiration date 31 March 2024
_gcl_au Expiration date 14 January 2025

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID Expiration date 10 November 2025
_omappvp Expiration date 28 September 2035
_omappvs Expiration date 16 October 2024
_uetsid Expiration date 17 October 2024
_uetvid Expiration date 10 November 2025
_fbp Expiration date 14 January 2025
fr Expiration date 7 December 2022
muc_ads Expiration date 16 October 2026
lang
_ttp Expiration date 10 November 2025
_tt_enable_cookie Expiration date 10 November 2025
_ttp Expiration date 10 November 2025
hubspotutk Expiration date 14 April 2025
YSC
VISITOR_INFO1_LIVE Expiration date 14 April 2025
hubspotutk Expiration date 14 April 2025
_uetsid Expiration date 17 October 2024
_uetvid Expiration date 10 November 2025
_ttp Expiration date 10 November 2025
MUID Expiration date 10 November 2025
_fbp Expiration date 14 January 2025
_tt_enable_cookie Expiration date 10 November 2025
_ttp Expiration date 10 November 2025
li_sugr Expiration date 30 May 2024
guest_id_marketing Expiration date 16 October 2026
guest_id_ads Expiration date 16 October 2026
guest_id Expiration date 16 October 2026
MSPTC Expiration date 10 November 2025
IDE Expiration date 10 November 2025
VISITOR_PRIVACY_METADATA Expiration date 14 April 2025
guest_id_marketing Expiration date 16 October 2026
guest_id_ads Expiration date 16 October 2026
guest_id Expiration date 16 October 2026
muc_ads Expiration date 16 October 2026
MSPTC Expiration date 10 November 2025
IDE Expiration date 10 November 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id Expiration date 16 October 2026
UserMatchHistory Expiration date 8 October 2022
bcookie Expiration date 16 October 2025
lidc Expiration date 17 October 2024
lang
bscookie Expiration date 8 September 2023
li_gc Expiration date 14 April 2025
bcookie Expiration date 16 October 2025
lidc Expiration date 17 October 2024
bscookie Expiration date 1 March 2025
li_gc Expiration date 14 April 2025
personalization_id Expiration date 16 October 2026

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Language