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The BTC price began a fresh increase on Friday and broke the $39K resistance level after remaining well bid at the $38,200 support zone.
The world’s first digital asset has seen a return to volatility over the past two weeks amid a market recovery that saw the combined market cap of cryptocurrencies lose and then gain approximately $300 billion.
The flagship crypto formed a high near $40,920 but parried gains as bulls struggled to gain momentum above the psychological $40K level.
That said, the past few days have been bullish for bitcoin after it surmounted several long-standing resistance levels on the back of news that E-commerce giant Amazon was planning to roll out bitcoin and crypto support. BTC currently trades at around the $40K zone at its price of $39,114, per data from coinmarketcap.
Institutional Players are Off the Sidelines
On July 30, Germany passed a new law allowing large-scale institutional funds managing a whopping $2.1 trillion to invest in crypto. In addition, the law allows insurers and pension firms to allocate up to 20% of their assets under management into top cryptocurrencies such as BTC and ETH starting next week.
The news comes amid more positive news that Wealthfront, a leading automated investment firm with $25 billion under management, will add Grayscale funds GBTC and ETHE to its investment strategies.
“Buying cryptocurrency can feel intimidating — it takes time and effort to research all of the options, set up a wallet, and monitor an additional account. That’s why we’ve made it easy to get exposure to Bitcoin and Ethereum right in your Wealthfront portfolio,” a blog post from Wealthfront stated.
The reports indicate that institutions are gearing up to re-enter the crypto market amid the recent market resurgence that saw BTC prices top $40K after weeks of range-bound trading.
Meanwhile, Glassnode flagged $2.5B in bitcoin moving off top exchanges like Binance, Coinbase, Kraken this week, signaling that institutional investors were finally ready to jump back into the market.
Despite the strong fundamentals, bitcoin traders are still at odds over the flagship crypto’s ability to maintain its upward momentum after bulls failed to flip the $40K level into support.
Ether Outpaces BTC
ETH gained strength above $2,250 and rallied nearly 1%, outpacing bitcoin. The altcoin broke above the $2,300 and $2,400 resistance levels before parrying some slight gains to trade at $2,348 during press time, per data from coinmarketcap.
To reactivate its week-long rally, ETH needs to remain stable above $2,300. A break above the $2,450 resistance level could see the second-largest cryptocurrency rise above $2,500, after which the bulls might attempt a retest of $2,600 in the near term.