Why Ethereum is the Best Bet Right Now, Insights from IMF and BlackRock
The post Why Ethereum is the Best Bet Right Now, Insights from IMF and BlackRock appeared first on Coinpedia Fintech News
In the midst of the crashing traditional financial market, investors are rushing toward a cryptocurrency for safer shelter. Recently, the IMF & Blackrock praised Ethereum’s blockchain network for its adaptability, flexibility, and strength, considering it a credible alternative to traditional financial systems.
Ethereum as a Safe Option
The IMF began to recognize Ethereum as a safe option in financial storms shows how much Ethereum matters globally. This recognition hints at a big change in how people see and use cryptocurrencies, with Ethereum leading the way.
Last year’s big problems in banking showed that when money is in chaos, cryptocurrencies like Ethereum can be a financial refugees. This might make Ethereum even more official, like having a dollar on Ethereum. That could make Ethereum a connection between regular banks and money groups.
BlackRock’s Endorsement
Larry Fink, CEO of BlackRock, a company known for managing risks well, aligns with the IMF’s view, describing Ethereum as a “Flight to Quality” asset. This term indicates that Ethereum is becoming more than just a speculative investment it’s becoming a reliable way to store value, especially for investors seeking stability during market ups and downs.
BlackRock’s endorsement of Ethereum as a “Risk-Off” asset challenges the usual view of cryptocurrencies. Instead of being seen only as a high-risk investment, Ethereum is now recognized for its ability to protect investments during tough economic times.
ETH ETF To Go Live Soon
Following the recent approval of spot Ethereum ETFs, demand for Ether from long-term holders surged as the price fell below $3,500. This increase came just before SEC Chairman Gary Gensler predicted the complete approval of a spot Ether ETF by the end of summer.
CryptoQuant’s head of research, Julio Moreno, highlighted that on June 12, long-term holders acquired 298,000 Ether tokens, worth about $1.34 billion, in just 24 hours. This surge in demand occurred despite Ether experiencing an 8.49% price decline over the past week.
However, Moreno cautioned that the downside might not be over, citing a similar drop below $3,500 on April 11, which led to a 25% decline, reaching a low of $2,814 by May 2.
As of now, ETH is trading at $3520 reflecting a slight surge in price with a market cap of $422 billion.
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