Following a significant decline last Thursday, when Bitcoin fell below $25,000 due to the Federal Reserve’s announcement of a pause on interest-rate increases, the cryptocurrency crossed the $30,000 threshold on Wednesday.
Within a day, the price of one Bitcoin rose by over 12%, climbing from just above $27,000 to nearly $30,700, marking its highest level in over a year. In April, Bitcoin had briefly surpassed $30,000 at around $30,400, which was then its highest peak since rebounding from nearly $16,000 a few months earlier.
The broader cryptocurrency market has also reflected this sudden surge, with Ether, the native token of the Ethereum blockchain, increasing by 8.5% to approximately $1,900. Consequently, the total market capitalization of all cryptocurrencies has risen to around $1.17 trillion, representing an over 8% increase in the past day. Notably, Bitcoin’s price rally contrasts with the slight downtrend observed in the S&P 500 and the Nasdaq over the past 24 hours.
Do check out: Exploring Bitcoin ETF: A New Frontier in Crypto Investment
Recent Bitcoin price surge
The surge in Bitcoin’s price aligns with the recent wave of interest from institutional investors in both Bitcoin and the broader crypto market. Matt Hougan, the chief investment officer at Bitwise Asset Management, remarked, “Investors are starting to see the massive scale of institutional and professional capital that’s going to enter the market over the next few years. They’re trying to get in early.”
Following the Federal Reserve’s announcement last Thursday, BlackRock filed an application for a Bitcoin spot exchange-traded fund (ETF), which, if approved, would be the first of its kind in the United States. This move could potentially bring in trillions of dollars from retail investors and pension funds. Bitcoin’s price experienced a boost upon this news, stabilizing around $27,000.
On Tuesday, the crypto market received further positive news regarding institutional investment. EDX Markets, an exchange backed by traditional finance giants Citadel, Charles Schwab, and Fidelity, announced its launch. Additionally, two other asset managers, WisdomTree and Invesco, submitted separate applications for Bitcoin spot ETFs, further intensifying the competition in this space.
