Bitcoin isn’t over yet: Heavyweights Fidelity and Citadel announce crypto plans
Two of the world's largest asset managers announce plans to offer cryptocurrency trading direct to retail customers.
- Bitcoin's total share of the crypto market (46.3%) has risen to its highest levels in over 9 months.
- Increased stability has also been witnessed across traditional markets over the past week, with the S&P 500 and Nasdaq showing low volatility.
- A controversial BTC mining ban bill which was approved by the NY senate on 3 June has yet to be signed off by governor Kathy Hochul.
After making an unexpected rally to around AUD$43.5K (US$31.5K) yesterday, Bitcoin has once again proceeded to showcase a price correction. The digital currency is currently trading at AUD$41,724 while exhibiting a 24-hr profit ratio of +1.3%.
The surge has not been viewed favourably by most analysts, with most claiming that it was just a means for traders to draw short-term profits. Also, with Bitcoin having largely stayed range bound between AUD$39K–$44.5K (US$28K–$32K) for a month, experts see no chance of a complete trend reversal until the asset is able to break past this upper threshold cleanly. If BTC slips to AUD$39K (US$28K), it may potentially slide further and drop as low as AUD$29K (US$21K), a pundit opined.
Another event that may potentially impact the price of BTC is news of multinational hedge funds Citadel Securities and Virtu Financial Inc. announcing their plans to build a cryptocurrency trading platform alongside retail brokerages Fidelity Investments and Charles Schwab Corp. The offering is still in its early stages of development and will most likely make its market debut by Q4, 2022 or early next year.
Bitcoin's exchange outflows have also been on the rise. Whenever large volumes of Bitcoin leave trading platforms for external wallets, it generally signifies growing investor confidence in the asset. Since 6 June, more than 30,000 BTC has exited Coinbase Pro, bringing the firm's Bitcoin balance sheets to its lowest levels in over 3 weeks.
Bitcoin's market dominance is rising, with the digital currency's market share in relation to other altcoins currently standing at 46.3%, its highest levels since October 2021. The lack of turbulence for crypto has also been witnessed across the equities market, with the Nasdaq Composite and S&P 500 remaining largely stable over the last 5 days.
Controversial Bitcoin mining ban law yet to be cleared by NY Governor
Kathy Hochul, the governor for New York, has still not committed to signing a highly publicised bill seeking to ban the mining of any proof-of-work (PoW) coins within her state. Hochul noted that her team will be assessing the proposal — which was passed on 3 June by the NY senate — during the coming weeks. If the proposed bill becomes a law, any fossil fuel-driven PoW crypto mining companies looking to set up base within New York (or even renew their licences) will be rejected. Only PoW firms utilising 100% renewable energy will be allowed to operate.
Disclosure: The author owns a range of cryptocurrencies at the time of writing
Trying to get a handle on the markets? Cut through the noise with our overview of the best cryptos to buy right now, explore some strategies for how to trade crypto or see if there's a better platform for you with our guide to the best crypto exchanges.