The world’s largest cryptocurrency, Bitcoin (BTC), has continued its upward trend, soaring past the $30,000 mark this week. As of the press time, Bitcoin trades at a price of $30,293, boasting a substantial market cap of $588 billion. This recent surge in Bitcoin’s price is accompanied by an influx of spot Bitcoin ETF applications that have been submitted to the SEC.
This trend was initiated by BlackRock and, since its filing, Bitcoin’s valuation has increased by an astounding $100 billion. Furthermore, Bitcoin’s price has experienced a 21% growth ever since BlackRock filed for a Bitcoin ETF. The dominating performance of Bitcoin has, interestingly, caused it to diverge from stocks, resulting in a negative correlation with the Nasdaq 100, an unprecedented development not seen since 2021.
Over the last three months, there has been a marked increase in BTC whales accumulating the cryptocurrency since the beginning of April. This notable accumulation was especially evident as Bitcoin’s price surpassed the $30,000 threshold. On-chain data provider, Santiment, reveals that a striking 259 transactions exceeding $1 million in value occurred on the Bitcoin network just two hours after the price exceeded $30.6k. For further growth, it is suggested that volume will need to continue rising.
This week, the crypto sentiment further received a positive boost with the launch of a new digital-asset exchange called EDX Markets. This development gained ample support from prominent firms such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.
However, despite these optimistic advancements, the market was hit by a crackdown from the SEC, causing a decrease in both sentiment and liquidity in the crypto markets. The SEC has filed lawsuits against Binance Holdings Ltd. and Coinbase Global Inc.; in turn, several digital tokens have been classified as unregistered securities. Indications of tighter monetary policies in the future represent additional hurdles that the market will need to overcome.
In conclusion, while Bitcoin has witnessed unprecedented growth and market dominance, it also faces skepticism in the form of regulatory crackdowns and potential policy changes. It is essential for both seasoned investors and newcomers alike to thoroughly research the market before deciding to invest in cryptocurrencies, as the author or this publication does not take responsibility for any financial losses incurred.
Source: Coingape
