The Bitcoin price (BTC/USD) has seen significant gain amid a larger crypto rally that developed following a Financial News report that BlackRock has set up a working group to look into digital currencies and blockchain.
The report was later confirmed by BlackRock’s chief executive officer Larry Fink.
“We are a big student of blockchain,” Fink said in an interview with Reuters. However, he cautioned that he does not “huge demand for cryptocurrencies”.
In an earlier interview with Bloomberg, Fink said: “I don’t believe any client has sought out crypto exposure.”
Nevertheless, the news that the world’s largest asset manager is examining the sector caused excitement on the digital currency market, which in turn led to big gains for most major cryptocurrency. Bitcoin, in particular, experienced a sharp surge in the late morning session, which allowed it to break through the $6,500 barrier for the first time since June 10. This was followed by a steady advance in the afternoon, which pushed the Bitcoin price above the $6,700 level. The digital coin finished the day at an intraday high of $6,741.75, up from its opening level of $6,357.01.
“BlackRock exploring crypto assets comes as no surprise and is definitely a positive development for the crypto market,” Chris Yoo, a portfolio manager at crypto-focused hedge fund Black Square Capital Management, told Reuters. “As the largest asset manager in the world, its interest in crypto assets could be a catalyst for upward price movement and encourage other asset managers, even with more conservative strategies, to seriously explore investing in the crypto space.”
The Bitcoin price has edged lower since the start of today’s trading. As of 07:15 BST, the coin was trading at $6,697, up 5% from the same time yesterday. Its market capitalisation currently stands at almost $114.9 billion.
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