Bitcoin hit a brief high soaring above $31,000 before experiencing a minor dip. The recent trade saw BTC valued at a grand $30,690, almost 2%, over the preceding 24 hours. This shows a recovery of investor enthusiasm following June’s spot bitcoin ETF filings by BlackRock and other financial titans. Following this event, BTC surged by 20% over the last month.
The return to robust levels can be traced to fears evaporating around inflation sparked by the ADP private sector jobs report. Bitcoin, alongside other assets, plummeted amid these worries, even plunging below its recent $30,000 support. The tides have turned and bitcoin witnessed a 2% surge in the course of 90 minutes in the day, before retreating slightly.
British multinational bank, Standard Chartered predicted bitcoin to reach a massive $50,000 by 2022’s end, escalating to even $120,000 at 2024’s closing. Multiple positive stimuli in the past month have fueled the recovery of digital assets, with favorable comments from the previous SEC Chair, Jay Clayton, providing an additional push.
Clayton suggested that if the bitcoin ETF filings managed to address the specific protections included in bitcoin futures ETFs, approval would follow suit. Furthermore, the possible sanctioning of the Congressional Digital Assets Market Structure and Investor Protection Act is another aspect warming investors to BTC. This act, if passed, will determine the level of decentralization of a digital asset which can hold considerable implications.
But tensions remain in aspects of the digital market. Less than expected equity indexes during 2023 led to the S&P 500 and Nasdaq Composite both ticking upwards. Investors have their eyes set on the June U.S. Consumer Price Index (CPI), which dipped to 4% in May compared to the 9% of a year ago.
The anticipated decision to raise the interest rate later this month by the U.S. central bank is another pivotal moment drawing eyeballs. The decision holds possible complications due to the contradicting data released recently and last week’s perplexing jobs data. Critics opposing the central bank’s hawkish monetary policy believe such moves risk pushing the economy into a recession.
A significant concern is the effect of aggressive rate increases on crypto markets. Bitcoin’s stability at $30,000 could become shaky as Wall Street keenly anticipates updates on the U.S. Bitcoin ETF and the high likelihood of a 25 basis point hike at the Fed’s next meeting. The crypto markets are on shaky grounds, thrown into a world of speculation and anticipation, as investors eye each development cautiously.
Source: Coindesk
