Crypto rally continues after JP Morgan move
The price of cryptocurrencies continued to rise following JP Morgan’s announcement that it would launch its own cryptocurrency. Over the past few days, the market value of all cryptocurrencies has risen by more than $10 billion. As of this writing, the price of Bitcoin and Ethereum are at $3860 and $145. These levels are close to the YTD highs.
JP Morgan’s currency will not be like Bitcoin or the currencies in existence today. Instead, it will be a stablecoin, that will be backed by the US dollar. It will be used mostly by large corporations, who transfer significant sums of money internationally. It is not clear how the currency will be mined.
In all this, the optimism is that stablecoins are now becoming mainstream. In December, it was announced that Facebook was considering launching a stablecoin that will be mostly used for money transfers. Facebook’s entry would be a major event for the blockchain world because of its size as the world’s biggest social media company.
What’s more, there is also a likelihood that other large companies will enter the industry. Last year, high-profile asset manager, BlackRock, announced that it was exploring the crypto sector. BlackRock has assets worth more than $6 trillion. Additionally, Fidelity, one of the biggest brokers in the US has announced plans to launch custodial services for the cryptocurrencies industry.
The ETH/USD pair is trading at 144.33. This is slightly lower than the previous high of 148.28. The price is higher than the 21-day and 42-day moving averages. The RSI has moved deeply into the overbought level of 80. In the short term, the price could continue moving up. However, it could also decline as investors realize that the new stablecoins have nothing much to do with ETH.