No Fed Rate Cuts? No Worries For Bitcoin, Says Research Firm
As the US economy grapples with rising inflation expectations and scaled-back forecasts for Federal Reserve rate cuts, the Bitcoin market remains buoyant, according to a detailed analysis by Reflexivity Research. With the US CPI headline inflation projected to accelerate to 4.8% by the November 2024 elections, according to Bank of America, conditions are seemingly unfavorable for a loosening of monetary policy. Despite this, the cryptocurrency sector, particularly Bitcoin, appears insulated and optimistic.
Bitcoin Unfazed By Delayed Rate Cuts?
The bond market now anticipates only three Federal Reserve rate cuts this year, a significant reduction from the earlier forecast of six. The CME FedWatch tool indicates that the majority of market participants do not expect a rate cut to occur before the mid-September FOMC meeting. This adjustment reflects a recalibration of expectations regarding the Fed’s capacity to manage persistent inflation pressures.
Amidst these macroeconomic shifts, Ritik Goyal, in a guest post for Reflexivity Research, presents a compelling analysis in his report titled “The Fed is Unable to Cause a Recession. Risk Assets are Yet to Realize This.”
The report argues that, contrary to conventional wisdom, the Federal Reserve’s rate hikes have had unintended stimulative effects on the economy. Goyal elucidates three specific mechanisms through which this phenomenon operates:
1. Increased Government Interest Payments: “Rate hikes raised interest payments by the government to the private sector,” Goyal notes. As the Fed raises rates, it increases the interest burden on the government, which has borrowed extensively during the post-COVID period. With the federal debt-to-GDP ratio exceeding 120%, the doubled interest payments now effectively act as a stimulus, channeling approximately $ 1 trillion annually to the private sector
2. Direct Subsidy to Banking System: The Fed’s policy adjustments have also led to a redistribution of wealth within the financial system. “Rate hikes raised the Fed’s direct subsidy to the banking system,” states Goyal. This has occurred as the yield curve inversion resulted in the Fed incurring losses on its balance sheet, losses that directly benefit the banking sector, translating to an estimated $ 150 billion annual subsidy.
3. Induced Housing Construction Boom: The rate hikes have paradoxically stimulated the housing market. “Rate hikes induced a housing construction boom,” according to Goyal. As higher rates discourage existing homeowners from selling, the only viable option to meet housing demand is new construction, a sector with one of the highest GDP multipliers.
Goyal’s insights underline a critical misalignment in the Fed’s current approach against the backdrop of substantial fiscal interventions since the pandemic. “The traditional monetary policy framework is breaking down under the weight of fiscal dominance,” Goyal concludes, suggesting an environment that could favor non-traditional assets like Bitcoin.
Echoing Goyal’s findings, crypto expert Will Clemente highlighted the broader implications for cryptocurrencies on X (formerly Twitter), stating, “With debt/GDP as high as it is, we’re in a backwards world where high rates mean interest payments on debt are stimmy checks for people that buy assets—~$ 1T will be paid out in 2024. Big picture is very constructive for the internet coins.”
At press time, BTC traded at $ 61,173.
Cardano’s Dark Hour: Panic Grips Investors As ADA Loses 22% Of Its Value
As the cryptocurrency market experiences heightened volatility, one digital asset, in particular, finds itself under the microscope: Cardano (ADA).
At the time of writing, ADA was trading at $ 0.45, down 1.8% and 21.9% in daily and weekly timeframes, data from Coingecko shows.
With prices fluctuating and investors on edge, analysts are closely scrutinizing ADA’s movements for signs of stability or further turbulence.
Analysis Points To Critical Crossroads For Cardano
Recent analysis conducted by Trend Rider, a respected voice in the crypto community, suggests that Cardano’s price has reached a pivotal moment. The digital asset stands at a critical juncture, with its price hovering precariously near a key support zone.
Should ADA breach this support level, analysts warn of a potential plunge to $ 0.25. However, if Cardano manages to hold this level, it could signal the formation of a double bottom, potentially paving the way for a rally towards the $ 1 mark.
But is this truly the end?
I’ve gathered crucial insights.
Let’s demystify the chaos with facts.
A must read, short thread
pic.twitter.com/gYWHPHmylk
— Trend Rider (@TrendRidersTR) April 15, 2024
Amidst this uncertainty, the fate of Cardano appears intricately linked to the movements of Bitcoin, the dominant force in the cryptocurrency market.
Bitcoin’s Influence On ADA Trajectory
As Bitcoin charts its own course, Cardano investors are keenly aware of the impact that the flagship cryptocurrency’s movements can have on ADA’s price action.
Should Bitcoin embark on a bullish trajectory, it could trigger a sharp decline in altcoins like Cardano, followed by a swift rebound.
Conversely, a bearish path for Bitcoin could spell an extended period of bearish sentiment for the broader crypto market, including Cardano. Despite the uncertainty surrounding Cardano’s future, Trend Rider advises investors to remain calm and adhere to their investment strategies.
In addition to providing guidance for navigating the current market conditions, Trend Rider draws parallels between Cardano’s present situation and its historical performance.
Historical Comparisons Offer Hope Amidst Uncertainty
Drawing from history, Trend Rider points to Cardano’s resilience in the face of adversity. In October 2020, ADA experienced a significant drop in value, plummeting to a mere $ 0.10 before staging an impressive comeback, reaching a valuation of slightly over $ 3.
This historical precedent serves as a reminder that Cardano has weathered storms before, and may be poised for a similar resurgence in the face of adversity.
As fear levels peak amidst Cardano’s testing of major support thresholds, investors are reminded of the importance of maintaining a steady hand and a long-term perspective.
Featured image from Pexels, chart from TradingView
Bitcoin Price Gearing For Another Lift-Off to $72.5K: Dips Turn Attractive
Bitcoin price found support near $ 67,500. BTC started a fresh increase and might soon revisit the $ 72,500 resistance zone in the near term.
- Bitcoin retested the $ 67,500 support zone before it started a fresh increase.
- The price is trading above $ 70,000 and the 100 hourly Simple moving average.
- There was a break above a key bearish trend line with resistance at $ 69,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if it clears the $ 71,400 resistance zone.
Bitcoin Price Holds Support
Bitcoin price saw another decline below the $ 70,000 zone. BTC even dived below the $ 68,500 level after the US CPI increased more than expected. However, the bulls were active near the $ 67,500 support.
A low was formed at $ 67,500 and the price started a fresh increase. There was a move above the $ 69,200 and $ 69,500 resistance levels. The price cleared the 50% Fib retracement level of the downward move from the $ 72,597 swing high to the $ 67,500 low.
There was a break above a key bearish trend line with resistance at $ 69,600 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $ 70,000 and the 100 hourly Simple moving average.
Immediate resistance is near the $ 71,400 level or the 76.4% Fib retracement level of the downward move from the $ 72,597 swing high to the $ 67,500 low. The first major resistance could be $ 72,500. The next resistance now sits at $ 72,800. If there is a clear move above the $ 72,800 resistance zone, the price could continue to move up.
Source: BTCUSD on TradingView.com
In the stated case, the price could rise toward $ 73,200. The next major resistance is near the $ 73,500 zone. Any more gains might send Bitcoin toward the $ 75,000 resistance zone in the near term.
Another Decline In BTC?
If Bitcoin fails to rise above the $ 71,400 resistance zone, it could start another decline. Immediate support on the downside is near the $ 70,000 level and the 100 hourly SMA.
The first major support is $ 69,200. If there is a close below $ 69,200, the price could start a drop toward the $ 68,500 level. Any more losses might send the price toward the $ 67,500 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $ 70,000, followed by $ 69,200.
Major Resistance Levels – $ 71,400, $ 72,500, and $ 73,500.
Forget Q1 Slump: Solana Explodes Over 300% Amid DEX Boom
In the first quarter of 2024, Solana became the clear leader thanks to a notable increase in the amount of Decentralized Exchange (DEX) and Decentralized Finance (DeFi).
In addition to its remarkable rise in DEX and DeFi sectors, Solana’s dominance was further solidified by its scalability, low transaction fees, and robust infrastructure.
The massive increase in DEX volume signifies a substantial rise in trading activity within the SOL ecosystem. This trend aligns with the broader adoption of DeFi, with Solana establishing itself as a major player in the space.
This remarkable increase is described in detail in a new report titled “State of Solana Q1 2024” by on-chain analytics company Messari.
The research states that throughout the last three months, The altcoin’s average daily spot DEX volume increased by over 300% to $ 1.5 billion.
Solana DEX Volume Skyrockets
Solana’s DeFi total value locked, a metric that represents the total value of cryptocurrency locked within DeFi protocols on a blockchain, surged by over 200% to nearly $ 5 billion, placing it fourth among all networks. This indicates a growing appetite from investors for DeFi projects built on Solana.
.@solana has become the home for retail users.
QoQ Metrics – DEX Volume
Check out the full Q1 report by @ph0rt0n
https://t.co/hYA1d2ZPY6 pic.twitter.com/egpv6U9Rl8
— Messari (@MessariCrypto) April 5, 2024
Stablecoin Adoption On Solana On The Rise
Another bright spot for Solana in Q1 was the significant growth in its stablecoin market capitalization, which jumped by 50% to nearly $ 3 billion. This surge was primarily driven by USDC, the leading stablecoin, whose market capitalization on Solana increased by an impressive 110% to slightly above $ 2 billion.
This growth reflects a rise in trust and adoption of stablecoins on the Solana blockchain, which are cryptocurrencies pegged to the value of traditional assets like the US dollar, offering stability in a volatile market.
Solana Price Volatility A Concern
Despite the positive indicators, the report also acknowledges some potential drawbacks. While the high trading volume is a positive sign, the fact that meme coins are a major contributor raises questions about the long-term sustainability of this growth.
Meme coins are often known for their erratic price movements and lack of underlying utility. Their dominance in Solana’s DEX volume might indicate a speculative bubble rather than genuine growth based on solid projects.
At the time of writing, SOL was trading at $ 174, reflecting a 12% decrease in the last seven days. This price volatility is a common concern in the cryptocurrency market, and Solana is not immune to it.
Featured image from Pixabay, chart from TradingView
FOMO Gives Way To Fear: Bitcoin-Ethereum Ratio Signals Shift In Crypto Sentiment
The recent ratio between Bitcoin (BTC) and Ethereum (ETH) prices suggests a potential decline in risk appetite within the crypto market. The ratio has reached its highest level since April 2021, indicating a stronger demand for Bitcoin than its smaller rival, Ethereum.
This development has led crypto asset trading firm QCP Capital to speculate that this shift in the ratio could be an early indication of a transition from “fear of missing out” (FOMO) to outright fear.
Bitcoin And Ethereum Performance
Regarding recent market trends, the second quarter of 2024 has begun with relatively subdued activity. Bitcoin’s price has dipped below the $ 70,000 mark and has remained range-bound between $ 65,000 and $ 68,000 for the past few days despite briefly touching the $ 70,000 mark on Monday.
According to QCP’s analysis, the inflow of funds into the spot Bitcoin Exchange-Traded Fund (ETF) market has not been substantial enough to drive significant price movements in either direction.
As a result, the company has observed that funding rates have stabilized, and the front end of the forward curve has declined from previous highs of 50% to less than 20% currently.
Interestingly, while the front end of the forward curve has decreased, the back end remains elevated. This has led to interest in rolling spot-forward basis positions further out, potentially driven by the continued demand for long-dated Bitcoin calls extending into 2025.
On the other hand, Ethereum’s performance has been relatively weak. QCP also notes that the ETHBTC ratio cross-tests a critical support level after breaking below 0.05. Notably, there has been sustained selling of Ethereum calls, resulting in lower volatility and downward pressure on the price.
Ultimately, QCP finds that these developments are prompting speculation as to whether this could be an early sign of FOMO turning into fear, particularly about Ethereum’s role as a proxy for altcoins.
While Bitcoin may find support from topside demand and ETF inflows, Ethereum’s performance and its impact on altcoins will be important factors to watch closely.
Will BTC Experience A Double-Top?
Renowned crypto analyst Crypto Con has raised an intriguing question about whether BTC is poised for a double top similar to the patterns observed in 2013 and 2021.
Analyzing previous market cycles, Crypto Con highlights that more evident double tops, such as those witnessed in the first and third cycles of 2021, triggered significant initial surges on the Fisher Transform indicator.
In contrast, the 2017 double-top formation showed a more subtle initial rise in June. Notably, all final cycle tops ended with a regular bearish divergence, where the price reached higher levels while the indicator declined, as seen in the chart below.
Currently, Bitcoin is approaching levels similar to those seen in 2017, as seen in the lower part of the chart. Crypto Con suggests that if the Fisher Transform indicator can consolidate around these levels without spiking to the line seen in 2013 and 2021, it could indicate a higher likelihood of a single top formation, which is the analyst’s most likely outcome, for December 2024, marking the top of this cycle.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin NFT Market Thrives, Franklin Templeton Remains Bullish, Binance Ends Support
Franklin Templeton’s digital assets division has released a note to its investors introducing Bitcoin-based non-fungible tokens (NFTs), highlighting a surge in activity within the Bitcoin ecosystem.
The asset manager attributes this increased momentum to various factors, including the emergence of Bitcoin (BTC) NFTs called Ordinals, the development of new fungible standards like BRC-20 and Runes, the growth of Bitcoin Layer 2 (L2s) solutions, and the expansion of decentralized finance (DeFi) applications built on the Bitcoin network.
Bitcoin Ordinals Shine
According to the Bitcoin ETF issuer’s report, activity in the Bitcoin NFT space is gaining momentum. In particular, Ordinals have seen a significant increase in trading volume over the past few months.
This growth is evident in Bitcoin’s dominance in terms of trading volume, which surpassed Ethereum (ETH) in December 2023, as shown in the accompanying chart.
In addition, several collections of Bitcoin Ordinals are emerging as dominant players in the NFT market, both in terms of trading volume and market capitalization.
These collections include NodeMonkes, Runestone, and Bitcoin Puppets, which have an aggregate market cap of $ 353 million, $ 339 million, and $ 168 million, respectively. They are the most notable collections.
In terms of trading volume over the past 30 days, the report shows that these three collections recorded trading volumes of $ 81 million, $ 85 million, and $ 38 million, respectively, over the past month.
The asset manager further claimed that what distinguishes BTC Ordinals from NFTs on other blockchains, such as Ethereum or Solana, is that they contain raw data recorded directly on the Bitcoin blockchain. This feature contributes to the attractiveness and growing popularity of Bitcoin Ordinals, as evidenced by market cap and trading volume figures.
Franklin Templeton, known for its involvement in the ETF market, was one of the issuers that launched a spot BTC ETF in the United States earlier this year. Its ETF, which trades under the ticker name “EZBC,” has seen total inflows of 281.8 million since its January 11 launch, according to BitMEX research data as of April 3.
Despite its zero-fee structure, Franklin Templeton’s ETF has seen a significant difference in flows compared to the leading players in the newly approved ETF market, such as Blackrock (IBIT) and Fidelity (FBTC), which have seen flows of over 14 billion and 7.7 billion, respectively.
Binance To Discontinue Support For BTC NFTs
In a recent blog post, crypto exchange Binance announced it would discontinue support for Bitcoin-based NFTs on its marketplace. Less than a year after their introduction, Binance will no longer facilitate airdrops, benefits, or utilities associated with BTC NFTs, citing a need to streamline its product offerings in the NFT space.
Binance states that users who own Bitcoin NFTs are advised to withdraw them from the Binance NFT marketplace via the Bitcoin network before May 18, 2024.
Effective April 18, 2024, users can no longer purchase, deposit, bid, or list NFTs via the BTC network on the Binance NFT Marketplace. Any existing listing orders affected by this change will be automatically canceled simultaneously.
Currently, BTC is trading at $ 68,300, up a modest 3% in the last 24 hours. It is approaching the significant milestone of $ 70,000, a level the cryptocurrency has struggled to maintain several times.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin Meteoric Rise: Analyst Predicts $90,000 Milestone In April
Amid the bearish pressure witnessed in the price of Bitcoin, Captain Faibik, a popular cryptocurrency analyst and trader, has identified the potential for a significant rebound that could send BTC to an unprecedented level before the end of April.
Bitcoin Might Be Poised For New Peak This Month
Bitcoin is presently exhibiting a downward pressure on low timeframes, falling to the $ 65,000 price level after briefly touching $ 71,000 on Monday. Despite the adverse price action, Captain Faibik is confident there will be an uptick in the price of BTC this month.
Captain Faibik’s analysis emphasizes Bitcoin’s bullish pennant formation on the 12-hour timeframe chart. According to the crypto expert, an upside breakout is anticipated later this week.
Should there be a successful breakout, as anticipated by the expert, Bitcoin might be poised to reach a new all-time high. As a result, Captain Faibik has set his price target around the $ 88,000 and $ 90,000 threshold this month. The post read:
BTC Bullish pennant formation on the 12hrs timeframe Chart. Expecting an upside Breakout later this Week. In case of a Successful Breakout, Bitcoin might hit $ 88,000-$ 90,000 this month.
The expert has also confirmed that the bullish pennant developed on the daily timeframe chart. Thus, the analyst is optimistic that the breakout will materialize soon.
The analyst has also identified some buying pressure on low timeframes, triggering momentum for the crypto asset. “BTC Bulls are defending the 4-hour Exponential Moving Average (EMA) 200 around $ 65,600 and bullish pennant also in play,” he stated.
However, for the Bitcoin bulls to regain momentum, they must reclaim the critical resistance level of $ 70,000. This suggests the bulls still have more work to do to reach the resistance level.
Currently, Bitcoin is trading at $ 66,125, with a decline of over 5% in the past 7 days. Its trading volume has plummeted by nearly 9% in the past day, while its market cap is slightly up by 0.81%.
Possible Correction On The Downtrend
While Faibik anticipates a recovery, some analysts are pessimistic about the asset’s movement and express worries about a potential pullback. One of the crypto experts who predicted a further correction in BTC is The Fomo Factory.
The expert discussed possible outcomes and provided several worrying price targets for the coin. According to the analyst, Bitcoin could drop to $ 60,000, representing strong support, and to the $ 52,000 and $ 56,000 Fibonacci retracement line.
The analyst further cautions against discounting a more significant retrace to the $ 48,000 and $ 42,000 region.
This prediction casts a shady ground for the largest cryptocurrency asset as the Bitcoin halving event approaches. However, given the previous impact on the coin’s price, there is hope for a rally in the short term.
Shiba Inu Dips Below $0.00003 Again – Can Bulls Reverse The Bullish Momentum?
The $ 0.00003 price level has remained a critical point for Shiba Inu in the past few days. A recent market tug-of-war between bulls and bears has seen the meme coin particularly struggling to hold above $ 0.00003 in the past two days. This has led to uncertainty about the crypto’s direction as we break into a new month as a breakdown below the figure could lead to an extended price reversal.
However, the majority of SHIB holders continue to hold onto bullish sentiment as the cryptocurrency is still doing well in a larger timeframe. This has led to bullish predictions from crypto analysts.
Current State Of Shiba Inu
Shiba Inu is currently trading at $ 0.0000305, up by 1.28% in the past 24 hours. Interestingly, the cryptocurrency’s price movement shows a lackluster action for the majority of the weekend. This saw it falling to as low as $ 0.00002958 yesterday.
However, this wasn’t for long, as the cryptocurrency found its way back above $ 0.00003 in the hours after, signaling the ongoing fight between bulls and bears.
While the action shows the bulls might be getting tired in the short term, a larger timeframe indicates they might still be having the upper hand. This is because SHIB is still up by 8.60% in the past seven days, reaching as high as $ 0.00003253 on March 28.
Similarly, the crypto is still up by 123% in the past 30 days, although it has reversed most of the gain it saw earlier in the month which saw the bulls pushing to $ 0.00004456 for the first time since December 2021.
What’s Next For Shiba Inu?
Shiba Inu’s bullish momentum might have waned from those witnessed earlier in the month, but some whales have continued accumulating in anticipation of an uptrend continuation. Crypto analysts have also predicted a bullish surge in the coming weeks. Crypto analyst Captain Faibik noted that SHIB is gearing up for another 2X rally. His prediction is based on a bullish price formation.
The price chart shared by the analyst shows that SHIB is currently forming a bullish pennant flag pattern. According to Captain Faibik, a breakout of the flag pattern could see Shiba the cryptocurrency surging to $ 0.000058 in April.
$ SHIB #Shiba another 2x Bullish Rally incoming
— Captain Faibik (@CryptoFaibik) March 31, 2024
Another popular analyst known as Rekt Capital predicted a similar surge based on history repeating itself. According to him, the current SHIB action could mirror the one in 2021. All it needs to do is just break above a major resistance at $ 0.0000332 before going on a strong uptrend.
Featured image from Pexels, chart from TradingView
Litecoin Soars Past $105 – Is LTC Set For Epic Rally This April?
Litecoin (LTC), the “silver” to Bitcoin’s “gold,” has surged in recent weeks, buoyed by a combination of technical factors, strong investor interest, and strategic accumulation by miners.
The LTC price jumped 12% in the past 24 hours, reaching $ 106.40. This uptick follows a 40% year-to-date gain, with most of the growth concentrated in the last week. Daily trading volume has also skyrocketed by 175%, indicating a significant influx of investors into the Litecoin market.
Will April Be A Good Month For Litecoin?
Analysts are particularly excited by a potential breakout from a multi-year downtrend. If LTC can maintain its position above $ 94, some believe it could usher in a new era of sustained growth.
A decisive break and hold above the $ 122 resistance level could trigger further gains, with some analysts predicting a surge towards $ 150 or even higher. This price pattern mirrors a successful breakout observed in 2020/2021, adding fuel to the bullish fire.
Popular crypto analyst Rekt Capital has also chimed in, noting the historical significance of similar price breakouts for LTC. He believes a successful retest of the downtrend and subsequent establishment of support could be indicative of a promising uptrend for the cryptocurrency.
Miners Fueling The Rally
One of the key drivers behind the recent surge is the behavior of Litecoin miners. Data from IntoTheBlock reveals that miners have been accumulating LTC at a healthy pace throughout March. They’ve added a whopping 150,000 LTC to their reserves, bringing their total holdings to 2.2 million.
This accumulation strategy reduces the selling pressure of newly minted coins and signals the miners’ confidence in the future price trajectory of LTC.
Open Interest On The Rise
The prevailing bullish sentiment finds reinforcement in the remarkable surge in open interest on Litecoin (LTC) futures contracts. Latest data shows a staggering 45% increase in open interest, signaling a growing optimism among traders regarding the coin’s future trajectory.
This surge in open interest not only reflects heightened confidence in LTC’s potential but also underscores traders’ readiness to explore new positions or bolster existing ones.
Such a robust increase in open interest amplifies the potential for sustained growth, as market participants eagerly position themselves to capitalize on anticipated bullish movements in LTC’s value.
The Road Ahead
Litecoin could be headed to a strong April performance, with strong technical indicators and bullish sentiment driving the current rally. However, responsible investors should always conduct their own research and exercise caution when navigating the ever-turbulent world of cryptocurrency.
Featured image from Pixabay, chart from TradingView
Why BlackRock Could Bet On This RWA Token: Crypto Analyst
In an era where the boundaries between traditional finance (TradFi) and crypto continue to blur, the tokenization of real-world assets (RWAs) stands out as one of the hottest trends. This trend, which allows tangible assets like vehicles and real estate to be bought and sold as tokens on a blockchain, promises to revolutionize the efficiency and speed of asset transactions.
Just last week, BlackRock, the world’s largest asset manager, has positioned itself at the forefront of this movement with the launch of a $ 100 million tokenization fund, which has already attracted over $ 240 million in investment within its first week.
Larry Fink, CEO of BlackRock, has been vocal about the potential of tokenization, stating that RWAs “could revolutionize, again, finance.” This comment has contributed to a notable surge in the valuation of several RWA crypto tokens in recent weeks. In light of these developments, crypto analysts from Layergg have identified a specific crypto project that they believe could garner significant interest from BlackRock.
Why BlackRock Could Choose Aptos
The project in question is Aptos, which has been earmarked for its potential in the RWA space. According to Layergg’s analysis shared on X (formerly Twitter), the narrative surrounding RWA and tokenization, bolstered by BlackRock’s involvement, suggests a nascent yet rapidly growing interest in this sector.
They highlight that mid to low cap RWA projects listed on Binance have performed exceptionally well, indicating a broader market interest spurred by narrative-driven investment strategies. However, the favorite crypto project for BlackRock could be Aptos.
A closer look at Aptos reveals several factors that might make it an attractive partner for BlackRock. Firstly, Aptos is poised to make a significant announcement related to RWA in April, coinciding with the Aptos DeFi DAYS event from April 2 to 5.
This announcement is speculated to involve a partnership with a global asset management firm, potentially BlackRock. “A partnership with a global asset management firm is expected to be announced. It is speculated that this may include BlackRock,” the analysts remarked.
The basis for this speculation includes Aptos CEO Mo Shaikh’s previous tenure at BlackRock, suggesting pre-existing industry connections that could facilitate such a partnership.
Moreover, Aptos founder Mo Shaikh & head of ecosystem at Aptos Labs Neil H hinted at this early on. In mid-February Shaikh revealed via X: “I sat down with three of the world’s largest asset managers this week A little preview…while the year started with ETFs, it will conclude with RWA on-chain en masse, growth in Asia and all using parallelisation on Aptos See you in Hong Kong.”
On February 21, Shaikh also commented on a post on X by Dan Morehead, founder and managing partner at Pantera Capital. Morehead stated, “Tomorrow I’ll be speaking at BlackRock’s Institutional Digital Assets Summit. […] The existence of that Summit **IS** the massive change. Really excited about this.” Mo Shaikh mysteriously commented, “There’s Summit to this.”
Besides that, Adam Cader, founder of Thala Labs recently stated via X that “something is cooking for Aptos. I’m a co-founder of the largest application on the network, and here’s my list of upcoming significant ecosystem wide catalysts.” Cader referenced Shaikh’s statement and added that Blackrock, Vanguard, and Fidelity are the three largest asset managers in the world.
“If I had to guess this refers to either them using the chain in some way / integrating it into one of their products which has precedent in the TradFi world. Also note Blackrock is the most crypto-aligned of the bunch,” he said via X.
Crypto Revolution: Will APT Follow AVAX?
But that’s not all. Aptos has been hinted to explore partnerships with other major asset management firms, including Franklin Templeton, which has previously invested in Aptos (tier 3) and planned to utilize its blockchain for money market funds.
Such strategic alliances could position Aptos similarly to how Avalanche benefited from its partnerships in the Project Guardian initiative (JPMorgan and Wisdomtree), experiencing a substantial price increase post-announcement. “Avalanche saw a price increase of more than 4x following the ‘Project Guardian’ news,” Layergg noted.
They concluded, “If a partnership with BlackRock proceeds, more ‘Big partnerships’ will naturally follow.”
At press time, APT traded at $ 17.59, up 87% over the past five weeks.
