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Stock market will swallow cryptocurrency

Oleg Koldaev, Catherine Lange

He who has information — has everything. Accordingly, the world of ecomonics is ruled by global media giants: Reuters, Bloomberg, CNBC. They confidently broke into the cryptocurrency market and are increasing their presence. Moreover, business information has a direct impact on the value of digital assets, whereas before 2017 bitcoin price had been rising due to political trends.

Much the same thing is going on the classical stock market. When some news appear on media sources — the prices of assets fall or rise. Does it mean that the cryptocurrency market coming out of the underground economy?

The most recent example: the bitcoin price has risen by 1,7% after the announcement that Thomson Reuters is going to monitor the status of crypto market via it's framework Eikon. This opportunity became possible after the media agency has managed to agree to cooperate with the CryptoCompare portal, whose data will form the basis of the monitoring. It should be reminded, that Eikon monitors the activities of 400 stock exchanges all over the world. From now on, the number of counterparties of the service will include crypto stock exchanges.

"Even though the price of the leading cryptocurrencies has been falling throughout the year, we see that our clients are interested in the estimation of the companies presented on the crypto market", — said Sam Chadwick, Director of the New Content Initiatives, Thomson Reuters.

Previously, on the 9th of May, Bloomberg agency together with Galaxy Digital Capital Management reported the launch of their project — the Bloomberg Galaxy Crypto Index (BGCI), which includes the estimation of the capitalization of cryptocurrency and ut's prices on the US market.

The fact that the world's leading agencies highlighted cryptocurrency even with three months apart speaks volumes. In particular, it means that digital currency and digital companies, which until recently had almost marginalized status, gradually advance into The Financial Establishment. The stock market is ready to accept and acknowledge the existence of the new economic reality. From here there is the investor's interest in the crypto companies' assets. Indeed, the classic and digital economics gradually approaching each other, becoming increasingly entwined each other in terms of financial tools (indices, accounts, capitalization), business organization and ethics. Is that good?

There's a danger that this process will be like the convergence of a diver and a shark. The capitalization of the crypto market is ranging from $250 till $300 billion whereas the same rate of the classic stock market exceeded $50 trillion. What's the chance that the largest financial powerhouses will just swallow crypto exchanges and crypto companies?

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