- The price of Bitcoin has surpassed $31,000 for the second time this year, with experts predicting a higher push should institutional investors maintain their current pace.
- The latest surge comes as Tradfi players flood into the digital asset market, setting up exchanges and filing ETFs.
- BTC drags the rest of the market up as altcoins recover lost ground following the SEC sting on Binance and Coinbase.
Institutional investors have triggered another bull run in the market, as predicted by bulls at the start of the year. How long will Wall Street’s thirst last for what they term the “digital gold?”
Bitcoin (BTC) has hit another milestone this month after it soars past the $30,000 level for the second time this year. The last time BTC was at $30,000 was in April and has since suffered a rough patch since then as a result of harsh regulation from the Securities and Exchange Commission (SEC), leading to surging outflows.
The dark days of the market leader look behind it as recent wins have wiped away its losses. On Wednesday, BTC hit $28,000, a milestone it has remained shy of since May and has moved uphill. The market leader has recorded a 16.5% growth in the past week and a 7% increase in the last 24 hours to shoot past $30,000.
At press time, BTC trades at $31,117, with experts predicting further strength to stamp its reclaim of over 50% of the market capitalization. At the start of the year, BTC was valued at $16,615 but has rallied over 80% in the past six months. Altcoins like Ethereum (ETH) and Cardano have also surged 5.67% and 6.87%, respectively.
Tradfi goes hungry, BTC goes up
Traditional finance has been instrumental to the rise in the market, with several firms investing in diverse products. The whole phase kicked off when BlackRock, the largest asset management firm, filed for a Bitcoin ETF, a move that the SEC has consistently rejected previous applicants.
Following the footsteps of BlackRock, Wisdom Tree and Invesco also filed for spot Bitcoin ETFs. Apart from this, a significant entrant by institutional investors was the launch of EDX, a digital asset exchange backed by several giants on Wall Street, including Fidelity Investments, Citadel Securities, and Charles Schwab. Deutsche Bank has also applied for a cryptocurrency custody license in Germany.
Ruslan Lienkha, YouHodler’s chief of markets, stated that the market will be structured by big firms in the future, adding that “more investors will have access to crypto investments with much lower risks. Important to notice that a very small percentage of BlackRock or Fidelity clients interested in spot BTC ETFs are enough to move the price further north.”
