- Bitcoin has surged over 8% to break through the $30,000 level for the first time since May, with bulls keeping pressure on the pedal.
- BlackRock’s ETF filing is critical to the uphill climb alongside the launch of Wall Street-backed exchange EDX.
- The major rally has seen Bitcoin bears lose $36.6 million in the past 24 hours, the month’s highest short squeeze.
The digital asset market is back in the green as more institutional investors eye top assets like Bitcoin (BTC) and Ethereum (ETH). The latest surge has raised the market cap by 5% to $1.17 trillion.
The price of BTC has spiked above $30,000 in the last 24 hours, surging above 7.8% and exchanges hands for $30,038 at press time. This is the first time the largest cryptocurrency by market cap is rising above the $30k resistance after it slipped through in May according to CoinMarketCap.
The uphill climb of BTC is fueled by the spot BTC Exchange Traded Fund (ETF) filing by asset management firm BlackRock. After the filing, Bitcoin reclaimed its 50% market dominance for the first time in two years, setting the tone for institutional interest in the asset. The filing initially saw BTC trade above 12% to gain lost ground following the Securities and Exchange Commission’s (SEC) lawsuit against Binance and Coinbase.
The lawsuit led to a sharp decline in many altcoins, but the ripple effect of the BTC ETF filing can be seen in the prices of other assets. Over the past 24 hours, Ethereum has increased 4.95% to trade above $1,800 after slipping last week. Cardano, Solana, and Dogecoin are also up by 7.79%, 5.4%, and 3.61%, respectively.
Institutional investors light the path for bulls
A key factor in the recent surge is the renewed appetite of institutional investors to get their hands on more digital assets. BlackRock is the largest asset management firm, and the filing of the BTC ETF has sparked new institutional confidence in the market.
Although the SEC has consistently refused a spot ETF application, including those from 21Shares and ARK, the application by BlackRock came as a lifeline for BTC bulls amid damaging regulatory moves by the Commission. Also, the emergence of EDX, a digital asset exchange backed by several Wall Street firms, including Fidelity Investments, Citadel Securities, and Charles Schwab heightened the uphill run of Bitcoin.
As more institutional investors become attracted to crypto assets, several observers feel the SEC will tone down its aggressive regulatory stance. Meanwhile, crypto enthusiasts have received the news of EDX with great optimism as healthy competition will strengthen the market.
