The bitcoin market is currently in a good dynamic. A trend in line with recent interest in the asset from global financial giants including BlackRock and Deutsche Bank.
Bitcoin goes from $28,000 to $30,000 in 24 hours
This is a new earthquake in the crypto market. Bitcoin (BTC) rose again to $30,000 in valuation. As recently as two days ago, the asset was worth some $28,000. A level it reached less than two weeks after dropping to $25,000. This, following the legal actions brought against Binance and Coinbase.
This year, the bitcoin market is showing sustained momentum. This is indeed the second time that the flagship crypto has reached the $30,000 mark in valuation. The asset had notably reached this level last April, thus confirming several prognoses pointing in this direction.
At the time, the causes of bitcoin’s surge were unclear. This time, there are reasons to explain this upward movement. Many analysts agree that the explosion in the price of bitcoin is to be linked to the demand for ETFs from BlackRock. Asset management seems to have started a trend as other financial groups have followed in its footsteps.
Thus, the behemoths of the investment WisdomTree and Invesco made similar requests in stride, with the SEC. This is without forgetting the recent creation of the EDX platform, supported by large American financial firms.
To this must be added an application filed with BaFin by the German banking giant Deutsche Bank. The financial institution is riding the wave to materialize its plan to become a crypto custodian in Germany.
The start of a sustained bull run?
Some believe that the interest of firms usually reserved in relation to cryptos explains the rise in the price of bitcoin. The big question now is whether this trend will continue over time.
Some, like investor Peter Schiff, do not see this trend continuing. A few days ago, he notably expressed doubts about the sustainability of the bitcoin price increase. His opinion, however, is not shared. For some traders, the SEC could help accelerate this trend if it were to grant all requests for Bitcoin ETFs. Until now, the regulator had fiercely opposed these procedures.
But, with the growing demand for bitcoin from intentional investors, it is possible that the SEC will change its position. What is certain is that the crypto has earned, to some extent, asset status “highly secure and decentralized that has proven its value over time”.
So says Alex Adelman, CEO of bitcoin rewards app Lolli. For him, “the rise of bitcoin part of a larger trend that indicates bitcoin is becoming a solid and well-established store of value”.
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