When analyzing the prospects of the cryptocurrency market, traders often overlook fundamental events that can significantly affect the entire crypto industry. They believe that if a particular news event hasn’t instantly become a market catalyst, then it won’t have any influence on trading at all. And yet, such approach to news analysis is fundamentally wrong. Many events have a certain time lag (delay) before becoming a full-fledged driving force.
One of such events was the decision of the U.S. based blockchain trading platform Bittrex to introduce fiat currency support. Bittrex has made a deal with New York’s Signature Bank. According to their agreement, the exchange will offer BTC quotes against the well known US currency. In other words, if earlier Bittrex services were available only to those who already owned a certain cryptocurrency, now it can be purchased directly on the exchange for regular dollars.
Founded in 2014, Bittrex was initially meant as a conventional cryptocurrency exchange, but later it grew into one of the most popular blockchain platforms for speculative trading. Today, Bittrex is one of the world’s largest exchange sites, featuring 260 instruments with a daily turnover of over $ 250 million.
AMarkets analysts note, that initially the US dollar will be paired with bitcoin and its two digital counterparts – Tether (USDT) and TrueUSD. Thus, traders will be able to switch between tokens liked to the dollar. This alternative will be handy when transferring USD to other exchanges or in case of the volatility of the above mentioned digital coins. However, deposits in fiat currency will be limited in the United States to corporate customers located in Washington State, California, New York and Montana. Bittrex reassures: retail investors won’t have to wait long. If the tests of corporate accounts are successful, then by the end of this summer fiat deposits and crypto-fiat trading will be ultimately available for retail customers as well.
Such innovation will make it possible to purchase cryptocurrency with fiat, which will certainly attract more large investors. In addition, the very fact of the partnership between Bittrex and Signature Bank indicates growing trust towards bitcoin from banking institutions. With the influx of dollar capital, Bittrex turnover is expected to increase enormously. In this scenario, we have good reasons to anticipate renewed interest in crypto followed by the long-awaited bitcoin’s fixation above the psychological threshold of $ 10,000. We hope that you already have long positions in your trading arsenal.
This article was originally posted on FX Empire
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