What’s up with those huge spikes in bitcoin and its buddies earlier? And can those big breaks be sustained? Here’s a roundup of the crypto updates you need to know this week.
First up, here’s a snapshot of how bitcoin and its buddies have fared in the past seven days as of October 19, 12:55 am GMT. Mostly green… I will take it!
Tether selloff and panic
While Tether HODL-ers were greeted by a sharp decline early in the week, bitcoin fans enjoyed a strong upside break from long-term consolidation patterns to as high as $7,800 on some exchanges.
For the crypto noobs out there, Tether or USDT is dubbed a “stablecoin” for being backed one-to-one by the U.S. dollar. Traders usually leverage their digital currency holdings with Tether, but there has been a lot of suspicion that there may be something shady going on with this stablecoin.
Although the reason for the sudden drop in Tether and the corresponding surge in the inversely-correlated bitcoin and other stablecoins like Gemini Dollar or TrueUSD haven’t been pinpointed, FOMO kicked into high gear and spurred more gains. Of course profit-taking was just as swift, dragging bitcoin back below the $7,000 mark almost instantly.
Fidelity unveils institutional platform
More moolah could start flowing into cryptocurrencies, particularly bitcoin and ethereum, by next year as investment giant Fidelity will be launching its institutional platform for these digital assets.
Fidelity Investments is the fifth-largest asset manager in the world as it provides financial services for $7.2 trillion in customer assets and 13,000 institutional firms and brokers.
Their crypto platform Fidelity Digital Assets will provide round-the-clock enterprise-grade custody solutions, a cryptocurrency trading execution platform and institutional advising services.
According to Tom Jessop, founding head of Fidelity Digital Assets:
This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors, are starting to think seriously about this space.”
In other Wall Street hotshot news, Goldman Sachs has reportedly gotten a stake in crypto custody service BitGo, along with CEO of crypto investment firm Galaxy Digital Mike Novogratz, as their clients have been expressing stronger interest in cryptocurrencies.
Novogratz has also mentioned that institutional investments could usher in new highs for bitcoin in the first half of 2019.
Just be warned, there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!