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Bitcoin price rise: Why is BTC rising today? Is the beginning of a new rise for bitcoin?

Bitcoin price rise: Why is BTC rising today? Is the beginning of a new rise for bitcoin?
16 Jul
11:13

The number one cryptocurrency rose from $6,367 at 10.08am BST to $6,646 at 12.34pm BST, according to CoinDesk.

What is behind the price rise?

largest surge in two weeks was caused by the announcement that BlackRock, the world’s biggest asset management company, is looking to invest in the digital currency.

Financial News said BlackRock has instigated a working group to focus on the ways it might take advantage of cryptocurrencies and whether it should invest in bitcoin futures.

Two unnamed sources said a team had been assembled from different areas of the company to examine the infrastructure of cryptocurrencies and how blockchain technology works.

Part of their investigations would be to keep an eye on what BlackRock’s competitors are doing with cryptocurrencies.

CNBC said it had learned the working group was now new but has been in operation since 2015.

A spokesman from BlackRock told the Express.co.uk today: “Like most financial institutions, BlackRock has a working group that meets periodically to exchange information on blockchain and consists of employees from various parts of the business.

“We have been looking at blockchain technology for several years, recognising potential for shared processes and data across market participants, clearing, settlement and reconciliation and simplified securities issuance.”

Other digital currencies, including ethereum and , also received boosts  off the announcement.

jumped by more than 5 percent, while ripple was up by over 4 percent.

What has BlackRock said in the past about bitcoin?

The move marks a massive u-turn for Blackrock, which like several other City firms has previously issued warnings about cryptocurrencies.

BlackRock Chief Executive Larry Fink, said late last year bitcoin was “speculative” and said none of his business clients would invest in it.

Speaking at the time, he said: “It is an instrument people use for money laundering.”

The huge change in rhetoric has not gone unnoticed by industry watchers.

Blockchain advocate @TheCryptoLab tweeted: “This is absolutely huge, Black Rock is a $6.3 TRILLION investment powerhouse. 25x bigger than crypto itself. First JP Morgan, then Goldman Sachs and now Black Rock. Bullish!

But some finance analysts suggested the rise was too early to predict a long-term surge for cryptocurrency.

Comparing bitcoin’s fortunes to that of the English football team, Julian Hall, entrepreneur and the founder of ultra.education told Express.co.uk: “Like betting on our sporting ambitions in the last week, is it too soon to say that ‘bitcoin is coming home’ to its lofty price of $15k?

“Probably.”

Source: https://www.express.co.uk/finance/city/989668/bitcoin-price-usd-today-stock-btc-rise-stock-news-chart-blackrock-markets

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