Bitcoin BTC/USD Bulls regained optimism as the world’s largest investment manager BlackRock announced yesterday that it has launched a private trust offering exposure to spot Bitcoin to institutional clients in the United States.
BlackRock said, “Despite the sharp downturn in the digital asset market, we still see significant interest from some institutional clients in how our technology and product capabilities can efficiently and cost-effectively access these assets.”
The message this sends to other institutions is not to be underestimated and is a significant milestone for the entire crypto industry.
Bitcoin miner Genesis Digital Assets is also investing more in the future of Bitcoin, having announced that it will secure 708 megawatts (MW) of mining power, potentially leading to 130 full-time jobs in the United States.
For price to follow BlackRock’s incredible news, inflation needs to show convincing signs of slowing down – are we finally seeing those signs?
Last month’s fall in headline inflation from 1.3% in June to 0.0% in July, the largest since the 1980s, is certainly worth noting.
Although the 6-month moving average of monthly core inflation remains elevated at 0.5%, the core CPI of 0.3%m/m shows that momentum has stabilized slightly.
Energy and other commodities were the big drivers behind the big fall in headline inflation, but the supply chains for these items have not improved noticeably, so their fall could be due to weaker demand.
Also, prices for lagging core services, including accommodation, still remain stubbornly high.
We can conclude that we are certainly not out of the woods and that further inflation deceleration is clearly needed, but we see encouraging signs for long-term investors.