Bitcoin’s recent surge above $30,000 marks a significant milestone, highlighting its resilience and potential as a digital currency amidst a volatile market.
Cryptocurrency Bitcoin surged above $30,000 for the first time since July, with gains for the week surpassing 10 percent. This comes amidst volatile trading across cryptocurrencies. The largest cryptocurrency by circulation, Bitcoin, reached as high as $30,022, its highest level since July 23. As of 7:30 a.m. in New York, it rose by 5.2 percent to $30,223, returning to price levels last seen in August. The sudden surge in Bitcoin’s price doesn’t have an immediate news catalyst, according to Enigma Securities’ head of research, Joseph Edwards. Bitcoin is known for its volatility and the opacity of its markets.
The broader financial markets have been slightly uncertain due to factors such as the war in the Middle East, rising benchmark U.S. 10-year yields, and concerns about higher interest rates. This week, Bitcoin markets have been particularly skittish as investors await news regarding the fate of applications with the U.S. Securities and Exchange Commission (SEC) for a spot bitcoin exchange-traded fund (ETF) by major financial firms including BlackRock. Approval of these applications could bring in a new wave of capital to the asset class.
Despite the sell-off in stocks and bonds, crypto assets are defying the trend and attracting investor attention. The potential SEC approval of a spot ETF is seen as a significant catalyst. On Monday, Bitcoin experienced a sudden rise after asset manager BlackRock denied a report that its ETF application had been approved.
It’s worth noting that this information is based on agency inputs and the situation is subject to change.
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