Since June, bitcoin (BTC) had struggled to reach the $30,000 valuation mark, a level it had reached a few months earlier. It is now done, for once again. We explain to you in the following lines what has favored this new improvement, interesting for the flagship crypto market.
Investor Enthusiasm Sparks Flagship Crypto Rally
After several weeks of resistance, bitcoin (BTC) has once again reached the $30,000 mark. This is the third time since the start of the year that this has happened. A surge which confirms the projections of several experts on this subject.
How to explain this new improvement in the valuation of bitcoin? For some analysts, you don’t have to look far. The enthusiasm that has reigned in the crypto ecosystem for several days constitutes a first element of the response.
Other crypto specialists go further by attributing the surge in the price of bitcoin to much more factual elements. The first and most important is the prospect of the imminent approval of a Bitcoin ETF.
In this perspective, which meets the agreement of firms like JPMorgan, at least $150 billion in institutional investments and qualified investors are expected. An influx that would propel the total valuation of the crypto market above $1,000 billion.
A delayed increase in the price of BTC?
This increase in the valuation of the price of BTC did not leave Larry Fink, CEO of BlackRock, indifferent. Speaking on this news, the official called the price increase of the flagship crypto a “manifestation of pent-up demand”.
In other words, Larry Fink believes that this surge in BTC is the result of pre-existing and pent-up demand, which has finally been released. A comment which highlights the gain in attractiveness of the crypto market which should, according to him, maintain its rise.
It’s an interesting prospect, but make no mistake. Indeed, despite the prevailing optimism, experts point to some significant operational concerns. They concern the cumulative volume of trade, which remains less than 40 billion.
To this must be added concerns regarding the relatively low liquidity of exchanges. Elements which suggest that the price of bitcoin could fall back to around $27,300. Over the past hour, BTC lost 0.37% of its price to trade around $29,890.
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