Crypto Markets See Small Dip After Interest Rates Rise
Crypto markets experienced a small dip after the Bank of England announced that interest rates would rise to 1.75% after reports emerged that inflation could surpass 13% in October. This caused Bitcoin (BTC) to fall back below $23,000 after reaching a weekly high of $24,666.
However, Bitcoin has been steadily rising over the last month, with the token seeing a 16% gain as retail users continually buy Bitcoin. On Coinbase, the metrics as of writing showed the trading activity was 94.5% buys, and only 5.5% sells. With institutions reportedly starting to return, with Polygon (MATIC) experiencing many whales pumping into the project last month, the fall below $23,000 is likely only temporary, and a retest of the level will be had potentially by the end of the day.
With many trading analysts still expecting Bitcoin to surpass $100,000 at some point over the next 3 years, investing in Bitcoin now could be a great option for a strong return on investment. However, as the timeline for this is unknown, if you do decide to buy Bitcoin, make sure that you are willing to be patient.
Coinbase’s shares rose over 30% after the announcement dropped that Coinbase would power BlackRock crypto custody services via Coinbase Prime. Coinbase Prime is Coinbase’s institutional crypto investing platform that provides an integrated solution for investing and managing crypto assets.
This is welcome news for Coinbase, as after its IPO, the company has consistently seen a fall in its share price before having to lay off 18% of its workforce as the crypto winter struck the crypto behemoth down. Moreover, although Coinbase has one of the largest user bases as a crypto exchange, the number of active users and trading volumes have been steadily declining since 2021.
The amalgamation of all of these factors caused Coinbase’s share price to fall, but now with one of the world’s largest hedge funds, BlackRock becoming a client of Coinbase, expect to see trading volumes increase and provide Coinbase with some much-needed liquidity.
With this announcement, it will be interesting to see what the future holds for institutional crypto custody providers, as having BlackRock on the books could open the gates for more to follow despite Senator Warren’s vendetta and recent bill to try and have banks move away from offering crypto services.
While institutions are now coming back into the crypto market and actively expanding, a juxtaposing area that is also seeing rejuvenation is crypto start-ups, as investors look to hedge against inflation through a diversified portfolio across many early-stage protocols.
This tactic is often used by experienced investors and is an excellent way to reduce your risk while still having the potential for large-scale returns. One token that is starting to pop up regularly is RoboApe (RBA), and although the coin may sound like your generic meme coin looks to provide utility across the Esports domain, as well as an avenue to onboard new crypto users.
Dogecoin, back in 2021, was the entry point for many crypto investors and, alongside giving many substantial monetary gains, helped gather new crypto enthusiasts into the ecosystem. However, one area that Dogecoin could have done more on is educating new users on the entire ecosystem and blockchain technology more broadly.
Through RoboApe Academy, RoboApe will look to alleviate this issue and offer utility to new users through its free educational hub. The point of RoboApe is to become the next generation of meme coins and revolutionise the narrative surrounding meme coins being merely a joke without losing the fun appeal behind the design and community feel.
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