Will the BlackRock Announcement Tip the Momentum of BTC?

Some market watchers and traders have expressed optimism that the news of BlackRock, Inc exploring the cryptocurrency scene will lead to a new price surge.

The world woke up to the news of BlackRock, Inc heading into the cryptocurrency markets on Monday with a tinge of optimism. For those who are not familiar with BlackRock, a little background will help.

BlackRock is the tenth largest hedge fund with assets valued at more than 28 billion USD. In Q4 2018, the Company’s CEO branded Bitcoin a market attraction for money laundering. But, today, the tune is different.

The embrace of cryptocurrencies by BlackRock will not be the first about-turn by known financial institutions. It was Goldman Sachs and JP Morgan that decided to follow the money earlier in the year when they opened crypto trading desks.

Why the BlackRock Decision Matters
The company manages clients’ funds in excess of $6 trillion according to Investopedia. What this means is that the company has access to funds that is 6 times the size of the present capitalization of the crypto market.

In keeping in tandem with the basics of Economics, the inflow of funds into any market as represented by increasing demand is a motivation for a rise in price. Market watchers expect that with the nod of BlackRock, the momentum of BTC could soar in a few weeks.

The bandwagon effect of bitcoin on the cryptocurrency market is such that cannot be overlooked. If the price of Bitcoin surges, there is no doubt, that most altcoins would follow suit.

A Buy-Call
Just as the news broke about the BlackRock decision, many traders and crypto enthusiasts seem ready to take a position immediately. Social media and chat rooms have been inundated with all manner of fresh price projections.

If the new developments will amount to a price tipping remains to be seen, in the volatile world of crypto, nothing seems impossible.

The fact about cryptocurrency is that there is an inherent value in the blockchain and crypto. The likes of Ripple have made a difference by crashing the cost of global fund transfers to the benefit of the banks. With the embrace of Crypto by BlackRock, it looks like it is “morning yet on creation day” for BTC and its spin-offs.