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Relevance of Recent Crypto Moves Ahead of Next Halving

The Bitcoin futures trading of top financial market company, CME Group Inc., is up. In a tweet on Wednesday, Oct. 17, the company notes that Bitcoin futures average daily volume rose by 41% in Q3. The increasing interest is a plus to the crypto markets’ readiness for the next Bitcoin block reward halving in 2020.

CME’s data shows its average daily volume soared above 5,000 contracts in Q3 compared to 3,577 in Q2 and Q1’s 1,854 (170% increase). A continuum in this trend of growing interest would contribute to strenghtening the impact of the halving on bitcoin price.

Recent moves
Coin.dance figures of weekly Bitcoin transactions on the Localbitcoins platform in developing countries show bullish signs. Markets are awaiting the launch of Bakkt and ErisX services – as well as an ETF. Major price movement patterns should start emerging by the six months preceding the halving. But it could be earlier when combined with other indicators like the impact the unexpected roll out of Fidelity Digital Assets’ services for institutional investors ould have.

Fidelity is not going to trade Bitcoin. Rather, it will make instituitions get more comfortable with the asset class. They will help securely store digital assets, provide facility for them to trade at the best price and give institutions the tools to integrate these assets into their businesses. Fidelity wants to solve the custody problem to enable instituitions manage investment in the space better. As one of the largest brokerages and asset managers in the world, with over $7.2 trillion in assets, solving the custody issue will help enterprises secure their private keys, act as their agent with counterparties and improve pricing availability.

According to its head of corporate business development and digital assets, Tom Jessop, Fidelity has been experimenting with cryptos since 2014 by mining them and testing the use of Bitcoin to make purchases at cafeterias. He adds that their roll out now is based on multiple institutions with credible names are getting into crypto and there is a demand for institutional investment.

Bakkt plans to launch its physical bitcoin futures next month. Aside Bakkt owned by same owners as the New York Stock Exchange – partner to Microsoft and Starbucks, some credible names have associated with crypto of late. Last week, David Swenson, who manages Yale University’s $29.4 billion, made the endowment’s first cryptocurrency-related investments. Often compared to legendary value investor, Warren Buffett, Swenson invested in Andeessen Horowitz’s new cryptocurrency fund. In another case, Coinbase co-founder Fred Ehrsam’s Paradigm blockchain and cryptocurrency fund.

It is not surprising that a global cryptocurrency market data provider, CryptoCompare, published a taxonomythat defines and categorises crypto assets to help regulators, investors and industry participants better understand the differing types in existence.

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