Bitcoin’s price experienced a significant surge, reaching $29,000, thanks to a series of exchange-traded fund (ETF) applications in the United States and the increased involvement of institutions in crypto trading. According to data from CoinGecko, Bitcoin reached $29,012.81 on Wednesday, currently standing at around $28,980, a 7.5% increase in just 24 hours.
The renewed optimism and upward movement began on June 15 when BlockRock filed an ETF application with the U.S. Securities and Exchange Commission. Bitcoin was trading at around $25,300 at the time. Since then, the flagship cryptocurrency has maintained its upward trajectory, soaring 11.6% over the week to hit the $29,000 milestone. The wave of ETF applications and institutional support that followed BlackRock’s application has fueled this impressive performance.
Following in the footsteps of BlockRock, asset managers WisdomTree and Invesco also submitted their ETF applications this week. The launch of EDX markets on Tuesday, a crypto exchange supported by Fidelity, Charles Schwab, and Citadel Securities, seemed to further bolster the bullish momentum. EDX currently supports four cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
In Europe, Germany’s largest bank Deutsche Bank reportedly applied to the country’s financial regulator for a crypto custody platform license, adding to the growing list of positive developments in the crypto space.
The increasing optimism around Bitcoin has also had a positive impact on altcoin prices, with ETH regaining the $1,800 level it lost after the U.S. Securities and Exchange Commission levied fresh lawsuits against Binance and Coinbase earlier this month.
The total market cap of all cryptocurrencies has risen by 6.2% in the last day, reaching $1.18 trillion.
However, with the influx of institutional interest and the race to file ETF applications, concerns also arise. Is the crypto space prepared for the level of scrutiny and regulation that comes with increased institutional involvement? Furthermore, increased institutional support could lead to a more centralized crypto market, potentially diminishing one of its main appeals – decentralization.
Despite these concerns, the current bullish momentum in the crypto market demonstrates that there is still confidence in the technology’s potential and its ability to transform the financial landscape. Thus, it is crucial for the industry to navigate these developments with caution and maintain a balance between institutional involvement and decentralization to ensure a stable and successful future.
Source: Decrypt
