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Cryptocurrencies surge as hedge funds may be entering market

Summary:

  • Coinbase Custody official open for institutional investors

  • Bitcoin (BITCOIN on xStation5) broke above the $6500 handle

  • Group of European banks complete live tests of blockchain platform

The cryptocurrency market enjoyed another day of gains yesterday. Bitcoin price is now up 12% since the beginning of second half of the year and it has started just 3 days ago! Along with Bitcoin other noticeable coins surged and in turn we are observing some major changes in the technical outlook of Ethereum or Litecoin. A specific reason standing behind this rapid price jump is not known but the surge has been quite well timed with Coinbase announcement concerning their new service for institutional investors therefore this could have been one of the reasons.

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LITECOIN broke above the downward trendline yesterday what may suggest that the reversal is looming. In case the price manages to overcome the $89-90 area the next area to watch may be vicinity of $98 handle as 23.6% Fibo level is localized there. Do notice price reacting to this level in mid-June. Source: xStation5

One of the world’s biggest cryptocurrency exchanges Coinbase has announced yesterday that its Coinbase Custody service for institutional investors is finally open. Custody offers “whales” a range of services including an institutional grade broker-dealer, ability to store their digital holdings, financial reporting services or client support. The company announced that it has accepted its first deposits in the previous week. This seems to be confirmed by data as an intense rise in the cryptocurrency trading volume has been observed on the numerous exchanges around the world what may signal that institutional investors, like for example hedge funds, are stepping into this market. The Custody is only available for the investment firms from the US and Europe but Coinbase plans to begin offering similar service to its Asian clients soon.

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BITCOIN surged yesterday breaking above the $6500 mark and distancing itself from the 33-period moving average (green line). The most famous coin is trading in the vicinity of $6600 handle at press time and may be poised to test the resistance level at $6700 in the nearby future. Source: xStation5

The Government of Bermuda seems to have recognized the potential of the blockchain technology as it decided to implement changes to the Banking Act. Namely, the country’s authorities decided to include in the Act a new class of banking services that aim at supporting the domestic fintech and blockchain organization. It is pleasing to see that the government managed to deliver a deal that would regulated this area as prior to this decision domestic banks were reluctant towards providing services related to the blockchain. Bermuda is emerging as one of the most crypto-friendly regions given its efforts to utilize the blockchain potential. Let us recall that the island has already spent over $25 million dollars on blockchain education of its citizens.

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Yesterday’s rapid surge allowed ETHEREUM not only move away from the lower bound of the trading zone but even to break above this range. The coin price surged to the $480 handle yet failed to break above this obstacle. In turn we are observing price retreat towards $470. In case the bearish momentum prevails a reaction to the earlier mentioned zone (red colour on the chart above) may be crucial. Source: xStation5

Some time ago several European banks partnered up and developed the “we.trade” blockchain platform that aims to conduct crossborder financial transaction more efficiently. The group announced that it has completed its first live trades recently. HSBC, one of the banks taking part in the project, reported that three of its clients managed to complete crossborder, open account transactions via “we.trade” platform. The platform focuses on serving small and medium businesses that trade in Europe. The platform currently operates in 11 European countries with plans to expand further.

 

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