Bitcoin Forecast: The Positive Reactions to Fed Exposure
Cryptocurrencies on the world market today are growing slightly. According to this morning’s data on the Coindesk site, Bitcoin is trading at 32,457 dollars. Moreover, it has recorded a jump of 1.37 percent in the last 24 hours. The recovery of the digital property market came after US Fed President Jerome Powell’s announcement. This was part of the Fed’s mandatory semi-annual presentation to Congress on the state of monetary policy and the economy. He said that the US economy needed to improve before the central bank decided to change its ultra-loose monetary policy. In translation, this means that there will be no recent increases in interest rates. On the other hand, inflation in the United States has risen the fastest in the last 13 years. So, many see cryptocurrencies as a mechanism to protect themselves from them.
BlackRock CEO Larry Fink said the firm testified low investor interest in Bitcoin. He further noted that investors would not come to the property manager due to exposure to the leading cryptocurrency. Decreased interest in the digital property of the bell tower could be a consequence of the consolidation of the price of Bitcoin. Investment management giant BlackRock recently said investor demand for cryptocurrency has slowed.
In an interview with CNBC, the executive director of the institutional management of BlackRock’s assets said that there is not much interest in cryptocurrencies. In 2018, Fink stated that clients are not interested in exposure to digital assets. However, the CEO noticed an increase in business media attention around Bitcoin. He even said that the leading cryptocurrency could be an alternative wealth store.
BlackRock began investing in Bitcoin futures earlier this year, while an SEC report revealed that the company had 37 BTC futures contracts in January. Despite earlier mentioning that cryptocurrencies could become a significant asset class, Fink said the asset manager now sees reduced investor demand for leading digital assets. Fink concluded that the corporation’s investors are more focused on building long-term returns over a longer period of time and that Bitcoin is not part of “those talks.”
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