Following US Federal Reserve chair Jerome Powell’s recent comments that led to higher treasury yields, Bitcoin price and other cryptocurrencies experienced modest gains on Friday.
However, a legal action by the state of New York against Digital Currency Group, Genesis Global Capital, and the Gemini crypto exchange, alleging fraud exceeding $1 billion, created some uncertainty.
Bitcoin briefly dipped but eventually recovered, surging over 3% to approach the halfway mark to the key $30,000 level. Ethereum also saw a 2% increase but remained below $1,600, while most alternative cryptocurrencies were trading higher in the morning.
Blockchain Partnership: A Catalyst For Bitcoin Price, Crypto Bull Market
The convergence of two financial behemoths, BlackRock with $8.5 trillion in assets under management and JPMorgan overseeing $3.8 trillion, in a blockchain-driven partnership has ignited expectations that these venerable giants may become the catalysts for the forthcoming cryptocurrency bull market.
Image: Financial News London
This potential collaboration between BlackRock and JPMorgan underscores a growing recognition within the traditional financial sector of the transformative power of blockchain technology and cryptocurrencies.
According to a report from crypto services provider Matrixport, the potential approval of a BlackRock spot bitcoin exchange-traded fund (ETF) could propel Bitcoin price to reach $56,000. Their more conservative estimate suggests a minimum price of $42,000, assuming that 10%-20% of gold ETF investors invest in a spot bitcoin ETF.
Bitcoin price nearing the halfway mark to the key $30K territory today. Chart: TradingView.com
Recent reports in Forbes have it that BlackRock has taken a pioneering step by utilizing JPMorgan’s cutting-edge blockchain collateral system. This development coincides with BlackRock’s expressed interest in launching a spot bitcoin ETF and JPMorgan’s positive stance on the future of bitcoin mining.
Leading Financial Institutions: Driving The Crypto Bull Run
The convergence of these factors has led to predictions, as mentioned by George Tung of TheStreetCrypto, that major financial institutions like BlackRock and JPMorgan could become influential drivers of the next cryptocurrency bull market, attracting trillions of dollars into the space along with other industry leaders such as Fidelity, Vanguard, Grayscale, and more.
Image: Swissborg
On June 15, BlackRock submitted its application for a spot bitcoin exchange-traded fund (ETF). In the seven days following this filing, the Bitcoin price surged from $24,800 to exceed $30,000, indicating a notable market response to the news.
Meanwhile, Fidelity Digital Assets has released a study suggesting that Bitcoin surpasses digital gold and could potentially attain a price of $676,000 or higher. The study’s key insights highlight Bitcoin’s distinctive position as a monetary asset and store of value, drawing parallels with gold due to its scarcity and fungibility while noting its enhanced portability and programmable features.
The study authored by Chris Kuiper, Fidelity Digital’s director of research, and research analyst Jack Neureuter, argues that Bitcoin represents a distinctive asset class that amalgamates the favorable qualities of both gold and digital assets. In essence, the Fidelity study ultimately concludes that Bitcoin stands as a unique asset class, surpassing gold as a superior long-term store of value.
Featured image from Investors Business Daily