- Bitcoin price may have hit the ultimate floor price as the adjusted SOPR on-chain metric rebounds at 0.90.
- A minor dip to $22,000 – possibly $20,800 will allow BTC to collect liquidity before retackling resistance at $24,000.
- BlackRock and Coinbase have partnered to offer institutional crypto trading, custody and brokerage services.
Bitcoin price has struggled to sustain its upside momentum since it got rejected from the seller congestion at $24,000 on July 29. The pioneer cryptocurrency will likely slide to $22,000 and $20,800 as it hunts for fresh liquidity. However, fundamental data on profit/loss suggests that BTC may have bottomed but lacks a strong enough catalyst to push out of the bearish shackles.
BlackRock To Offer Crypto Trading To Institutions
Asset management behemoth BlackRock (BLK) announced via a blog post on Thursday that it has partnered with the publicly listed cryptocurrency exchange, Coinbase (COIN) to offer targeted crypto trading services to institutions. This collaboration will see mutual customers of BlackRock's investment management platform, Aladdin, and Coinbase get access to tailor-made services such as custody, crypto trading and prime brokerage.
"Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to manage the operational lifecycle of these assets efficiently," Joseph Chalom, BlackRock's global head of strategic partnerships, said in the statement.
He continued, "this connectivity with Aladdin will allow clients to manage their bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes."
The move by BlackRock emphasizes how traditional financial players on Wall Street are spreading their wings into crypto; the massive correction this year notwithstanding. Bitcoin has shed off nearly half its value since the beginning of 2022, while the crash of the Terra ecosystem and crypto lending platforms like Three Arrows Capital continue to raise questions about the market's stability.
The Moving Average Convergence Divergence (MACD) on the 12-hour chart below reveals that short-term dips will be challenging to avoid. Support is envisaged at the accelerated trend line (broken line) near $22,000 and the primary trend line close to $20,800.
BTC/USD 12-hour chart
A glance at fundamental factors like the adjusted Spent Output Profit Ratio (aSOPR) affirms the idea that Bitcoin price has bottomed. According to Glassnode, bear markets see a significant decrease in interest and demand for BTC over time. Coupled with high volatility, this tends to "shake out" weak hands in bear market rallies and selloffs.
However, bear markets eventually form a stable final floor price, attracting "money buyers of last resort." As these investors accumulate the asset, momentum builds, prompting a bull run.
Bitcoin aSOPR chart
From the chart above, the aSOPR holds at 0.94 after recoiling from 0.90. The last time this metric dropped slightly below the same level in July 2021, Bitcoin price rallied from $31,670 to an all-time high of $68,968 in November 2021. Therefore, if history repeats itself, BTC is in the prelude of an incoming bullish move.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.