Dow Pounds Toward 250 Point Gain, Fidelity Brings out the Bitcoin Bulls
Both Dow futures and the bitcoin price are making strides ahead of the US trading session, with bulls in the stock market and nascent cryptocurrency sector finding much to be optimistic about.
FIDELITY, SWIFT SPARK CRYPTO MARKET ADVANCE
On the cryptocurrency front, asset outlooks remain bearish, though bitcoin and most other large-cap tokens entered the day on a moderate incline.
BITCOIN PRICE OUTLOOK BEARISH, BUT FIDELITY BRINGS HOPE
The bitcoin price enters the day at $3,441, which represents a 24-hour recovery of around 1.38 percent.
That minor turnaround followed reports on Tuesday that major asset manager Fidelity is just weeks away from launching its long-awaited bitcoin custody service, which will allow institutional investors to store their cryptocurrency assets with a trusted name from the mainstream financial sector. Bulls such as Galaxy Digital founder and former Fortress principal Mike Novogratz have long said that developments such as these will help power the next bitcoin bull run, and now they’re finally beginning to arrive.
That said, many technical analysts remain bearish on the short-term direction of the bitcoin price. Most chart-watchers expect the flagship cryptocurrency to at least test its $3,000 support level, and how that support responds to the gravity of bitcoin’s 13-month bear market could determine whether the floor is in or if the bears have more room to run.
RIPPLE PRICE POPS ON SWIFT SPECULATION
There was a bit more action in the altcoin markets, as bitcoin’s smaller competitors took advantage of the day’s positive sentiment to recoup a bit of market share from the dominant cryptocurrency.
Ripple (XRP), the second (or third) largest cryptocurrency, outperformed the large-cap cryptocurrency index thanks to some bullish news from mainstream finance, namely that enterprise blockchain consortium R3 signed a partnership with mega-payments network SWIFT.
Despite some past disagreements — and lawsuits — R3 and crypto startup Ripple are closely aligned. Indeed, Ripple CEO Brad Garlinghouse was on stage during the panel discussion where the R3-SWIFT partnership was announced, and SWIFT CEO Gottfried Leibbrandt had some kind words for XRP.
“I think that the big part of Ripple’s value proposition is the cryptocurrency XRP,” he said.
That was more than enough to shake the ripple bulls out of their slumber, and as of the time of writing XRP had leaped by nearly 7 percent to just under $0.31.
The majority of other large cryptocurrencies rose by 2 percent to 3 percent on the day, carrying the overall crypto market cap to a present value of almost $115 billion.
Featured Image from Shutterstock. Price Charts from TradingView.