Two Important Things Happening on the Institutional Side
According to Anthony Scaramucci of Skybridge Capital, Bitcoin fundamentals are pretty positive in the long run because of elements that would create a demand shock for the cryptocurrency. Until they suffer short-term losses, everyone is a long-term investor, said Scaramucci. Although there may be some losses for investors in bitcoin, he continued that he thinks long term, the fundamentals are fairly excellent. The price of bitcoin has already dropped by more than 60% from its November record high of around 69,000 USD.
According to statistics, bitcoin fell to its lowest point since December 2020 in June, dropping to 17,958 USD. On Monday, Bitcoin was the last trading at 24,047.28 USD, down 2.4% from the previous day. Two important things have happened on the institutional side, according to Scaramucci, and he expressed optimism that they will likely lead to demand for bitcoin.
He cited the first reason that Fidelity is allowing its 401k programs to sell bitcoin, alluding to the financial services firm’s decision to permit businesses to provide employees the option of investing up to 20% of their retirement and savings plan in bitcoin. Another factor that will help the cryptocurrency gain momentum is Blackrock’s provision of a private trust for clients to invest in bitcoin, according to Scaramucci.
Statement by Blackrock
Blackrock stated they’re planning to create a private trust that will enable its clients the ability to invest directly in bitcoin, in addition to working with Coinbase on their Aladdin risk management program. The asset management company, which oversees assets worth roughly 8.5 trillion USD, has announced a collaboration with Coinbase that would enable its institutional clients to purchase cryptocurrencies, starting with bitcoin.
Scaramucci said that the value increase of the decentralized blockchain-based network is due to Ethereum’s forthcoming alleged merge. Ethereum is set to combine, which will lower transaction and gas costs. And one of the reasons why Ethereum has increased by more than 70% over the past five and a half weeks is due to this.
The second-largest cryptocurrency by market value, Ethereum, conducted its final rehearsal last week in preparation for a long-awaited upgrade that has been hailed as one of the most significant developments in the history of cryptocurrencies. After the last test runs for the merger, ether, the currency that drives the Ethereum blockchain network, rocketed to a two-month high. The token’s last trading price was $1,905.40, a 4.7% decrease from the previous day.