Bitcoin jumped high as BlackRock sets up a working group to look into crypto and blockchain

Bitcoin continues to touch higher edge on Tuesday, after asset-management giant BlackRock has made the headlines pervious days on news. BlackRock seem to have sudden interest in cryptocurrencies and blockchain, the technology that builds the infrastructure of crypto currency.

According to stock industry CoinDesk, which tracks prices from several exchanges, the most valuable crypto currency as per market rates, was trading higher by more than 5 percent compared to where prices were on Monday. Market start with Bitcon at around $6,720.84 as of 10:32 a.m. HK/SIN.

The prices of ethereum and ripple, the second and the third largest crypto currecy by market value respectively, also experience slight rise. As of 10:35 a.m. HK/SIN on Tuesday, Ethereum saw 6 percent rise while ripple was around 6 percent higher compared to levels seen one day earlier.

Many industry experts believe that if involvement of institutional investors continues to increase in cryptocurrency market, confidence of other small investors and buyers will touch new highs in an otherwise dubious market.

London’s financial news first reported the story. BlackRock CEO Larry Fink confirmed the news later in an interview with Reuters. Fink says, We are a big student of blockchain,” He further added, however, we don’t see huge demand for cryptocurrencies. In an interview with Bloomberg, Fink said, I don’t believe any client has sought out crypto exposure. Fink has previously ruled against Bitcoin, calling it an “index of money laundering”.

The world’s most valuable virtual currency by market value was trading higher by more than 5 percent compared to where prices were on Monday, at around $6,720.84 as of 10:32 a.m. HK/SIN, according to industry website CoinDesk, which tracks prices from several exchanges.

Senior market analyst at eToro, said of the report on Monday. “It definitely is causing some excitement”. The idea of big financial firms moving into crypto certainly isn’t new, and this is a trend we’ve been noticing gaining strength since November. Last year, two trading giants CME group and the CBOE, launched Bitcoin futures products, raising expectations of giants involvement in crypto market.

Financial regulatory authorities around the world are more concerned about the possible use of crypto currency for money laundering. China, South Korea and Pakistan have banned initial coin offering, which is a means of start-ups selling new crypto currency tokens to users.

Virtual currencies faced dubious market situation due to excessive volatility in the industry resulting in the wild price swings. Bitcoin soared close to $20,000 late December last year but experiencing decline since, with transaction volumes falling significantly.

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