Coinbase soars after its agreement with the largest investment fund in the world

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It is not being an easy year for the crypto sector. During the last few months most of the news has been pessimistic; from layoffs in large companies, failed projects and a drop in the value of the main cryptocurrencies. But today a piece of news has appeared that seems to have enough strength to represent a change in trend.

Coinbase partners with BlackRock. The well-known exchange has announced a alliance with BlackRockthe largest investment fund in the world with asset management that exceeds 10,000 million dollars. Through this alliance, it has been stated that BlackRock will allow its institutional clients to buy with Bitcoin.

BlackRock has its own platform, Aladdin, through which it will allow the use of bitcoins. Coinbase will take responsibility for trading, custody and reporting of cryptocurrency trading, while BlackRock will adapt its tool. Coinbase puts up its cryptocurrency expertise and BlackRock puts up a huge number of top-tier clients.

Stocks have soared more than 40%. Although growth has moderated at the moment, Coinbase shares have climbed more than 40%. Shareholders have welcomed this news with open arms, although there is still plenty of room to make up for what was lost throughout the year.

In the crypto industry there are also serious companies.  Not even they are spared from mass layoffs

Still far from the good times. If we look at this week, Coinbase grows more than 50% to comfortably exceed $90 a share again. Far from the little more than 50 dollars that it marked at the end of May, but considerably below the more than 200 dollars that it marked at the beginning of the year.

It does represent a change in trend and a small joy for a company, Coinbase, which is not experiencing its best days and has had to lay off 18% of its workforce.

A hit of effect to counteract the shorts. This alliance with BlackRock and the sudden growth can be seen as a maneuver by Coinbase to fight against the ‘shorts’ of different investors. That is, there are investors who are “betting” that Coinbase would continue to fall. According to CNBC notes22% of Coinbase shares were available to be shorted.

An oasis that has it difficult to change the general dynamic. The growth of Coinbase is good news, but it is too early to think that the general situation of the crypto market will change. Even the likes of Elon Musk who had traditionally championed crypto have stopped trusting it to recoup their investment. However, the fact that an investor as powerful as BlackRock has been encouraged to take the step means that things in the background may not be so bad.

Image | nasdaq

It is not being an easy year for the crypto sector. During the last few months most of the news…

It is not being an easy year for the crypto sector. During the last few months most of the news…

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