Bitcoin, the world’s leading crypto in terms of market capitalization, recently surpassed the $29,000 mark. Several factors appear to be contributing to this upward trend which we will explore in this article.
Bitcoin crosses the $29,000 threshold
Bitcoin started the day strong, crossing the $29,000 mark. At the time of this article, it is trading at $29,363.5, registering a rise of 3.64% in just 24 hours.
Likewise, its capitalization Stock market and daily trading volume increased by 3.31% and 24.88%, respectively, amounting to $570.44 billion and $16.39 billion. So, what are the reasons for this rise?
Enthusiasm currently reigns in the world of cryptocurrencies, driven largely by significant advances in the United States. The possible approval of Bitcoin Spot ETFs in the United States is particularly watched, providing positive momentum to the crypto market.
Indeed, ETFs, or exchange-traded funds, represent an opportunity for investors to enter the Bitcoin market without necessarily owning the crypto directly. The anticipation surrounding this potential approval certainly boosts investor morale.
Additionally, BlackRock, an asset management stalwart, has revised its application for ETFs. Simultaneously, other players adapted their files, prompting the SEC to review its position on these financial products.
Additionally, four Financial Services Committee figures are pressing the SEC to approve Bitcoin ETFs, increasing pressure for imminent approval.
The key factors behind BTC’s meteoric rise
Beyond ETFs, regulatory and macroeconomic factors influence the rise of Bitcoin. Some sector specialists also highlight the beneficial effects of comments recently made by Jerome Powell, Chairman of the Federal Reserve. His satisfaction with the fall in inflation and the indication that no increase in interest rates is planned, except in the event of economic threats, reassured investors.
Furthermore, on the regulatory front, the SEC’s decision, announced last night, to end its proceedings against Brad Garlinghouse, CEO of Ripple, and Chris Larsen, its executive chairman, after several years of confrontation, constitutes a positive sign for the crypto sector.
This period, marked by macroeconomic optimism, Ripple’s legal victory and the wait around Bitcoin Spot ETFs, offers an explanation for Bitcoin’s recent rise beyond $29,000. However, it is important to remain cautious regarding future market developments, as nothing guarantees the sustainability of this upward trend.
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