Bitcoin has reached above $30,000 for the first time since April, and only the second time in 2023. There are a few colluding factors at play in the market at the moment that appear to be giving life back into the world’s largest crypto asset.
“Firstly, the launch of efforts to have a bitcoin spot ETF approved by a major financial institution such as BlackRock, since echoed by other institutions such as Wisdom Tree and Valkyrie, has reanimated the potential for enormous pools of capital to gain easy access to the market, writes Simon Peters, crypto market analyst at trading and investment platform eToro.. BlackRock manages an extraordinary amount of money which could unlock enormous potential for bitcoin were its ETF to be approved.
“Secondly, we’re seeing a host of new institutional exchanges coming to market which further reinforces the potentially ground-breaking increase of access to bitcoin ownership. Firms such as Citadel, Fidelity and Charles Schwab are all working in this are further enabling access.
“Finally, Fed chair Jerome Powell testified to the US House of Representatives Financial Services Committee yesterday, discussing stablecoins ‘that the Fed sees them as a form of money.’ Powell also noted that bitcoin has ‘staying power.’
“Overall, what we’re seeing in the potentially bullish narrative for bitcoin is the mainstream institutional – both financial and regulatory – approval of bitcoin as an asset. Investors already with scope and access to the market appear to be getting ahead of potential market changes in anticipation of large amounts of capital joining the market soon.”
