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finally؛ Bitcoin Touches $31,000 as BlackRock Rally Continues

Bitcoin has surged past $31,000 thanks to a wave of optimism from institutional investors who started eyeing up the asset following a high-profile ETF application and the launch of a new crypto exchange.

The rally sparked by institutional interest in the sector resumed, and Bitcoin extended its recent rally Friday, surpassing $31,000 and setting the token up for its best week since mid-March.

Bitcoin last broke past $31,000 in May 2022. At the start of this year, the asset was trading for less than $17,000 per coin.

According to NewsBTC, Bitcoin investor sentiment suggests that the current rally could continue on with time given that the rally that led to BTC climbing above $31,000 in April.

The 30-day price range may have foreshadowed this volatility, and the trendline breakout has now opened doors for the cryptocurrency to head toward $30,400, according to FxPro’s senior market analyst.

The pump comes after the BlackRock applied to the U.S. Securities

Last week, BlackRock applied to the U.S. Securities and Exchange Commission (SEC) for a bitcoin exchange-traded fund (ETF) that would allow investors to get exposure to the cryptocurrency.

The ETF, called iShares Bitcoin Trust, will use Coinbase Custody as its custodian.

BlackRock is the world’s biggest asset manager with $9.5 trillion in assets under management.

  • The move comes at a time when the global cryptocurrency industry has been caught in the crosshairs of the U.S. securities regulator on alleged violations of securities laws.
  • The SEC has yet to approve any applications for spot bitcoin ETFs.

BlackRock’s leadership has acknowledged the “steep downturn” in crypto assets but said that the firm was still seeing «more interest from institutional clients about how to efficiently access these assets».

The attention on BlackRock’s application underscores the relatively new scrutiny the company faces in the mainstream.

what caused the recent surge in institutional interest in Bitcoin

The recent surge in institutional interest in Bitcoin can be attributed to several factors, including:

  • Bitcoin’s lack of correlation with global risks: According to BitX CEO Marcus Swanepoel, institutional investors are increasingly interested in Bitcoin because it is not correlated with global risks.
  • Growing commercial and institutional appetite for Bitcoin exposure: Rapidly growing commercial and institutional appetite for Bitcoin exposure has highlighted the need for financial products and services able to handle large positions, hedge risks and take advantage of Bitcoin’s ample price volatility.
  • The launch of new tools and instruments designed to make trading of the digital currency easier and more familiar to investment professionals.
  • The need for alternative sources of available credit risk: With the firmer reassurance of such institutional backing, cryptocurrencies could then look more interesting to a broader investor base as potentially an alternative source of available credit risk.
  • Bitcoin’s outperformance of major assets: Bitcoin has consistently outperformed every stock and currency in existence since its launch in 2009, making it an attractive investment opportunity for institutional investors.

Overall, these factors have contributed to the growing interest in Bitcoin among institutional investors, and this trend is expected to continue in the future.

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