Bitcoin Surges to 13-Month High as BlackRock Ventures into Cryptocurrency
Bitcoin prices reached a new high on Thursday, surpassing levels from June 2022, as BlackRock’s entry into the cryptocurrency market fuels optimism for the long-awaited bitcoin ETF.
The price of bitcoin rose to just over $31,460 early Thursday.
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Key Facts
Bitcoin’s price surged to over $31,460 at 5 a.m. ET on Thursday, reaching its highest level since June of the previous year. However, it later experienced a slight decline as the broader market tumbled.
In a significant development, BlackRock CEO Larry Fink expressed his belief in the potential of bitcoin to revolutionize finance during an interview with Fox Business. Fink emphasized the importance of tokenized assets and securities in driving the adoption of bitcoin.
The possibility of a bitcoin exchange-traded fund (ETF) has also contributed to investor optimism. BlackRock submitted an application last month to register its own ETF, which would hold the world’s largest cryptocurrency.
Another positive indication for bitcoin is the return of open interest to pre-collapse levels following the abrupt downfall of crypto exchange FTX in November, according to CryptoQuant.
Additionally, Ark Invest analysts highlighted in a recent report that around 70% of bitcoin in circulation has remained inactive for at least one year. This suggests growing investor confidence in the asset.
Key Background
Bitcoin’s recent surge coincides with the weakening of the U.S. dollar index and signs of abating inflation. Moreover, several companies, including WisdomTree, Invesco, VanEck, Fidelity, and Bitwise, have refiled applications for a bitcoin ETF in recent weeks, further boosting the price of bitcoin.
Tangent
Edward Moya, an analyst at Oanda, highlights the growing optimism surrounding the potential approval of BlackRock’s bitcoin ETF. He suggests that the rally may only continue if the Securities and Exchange Commission grants permission for a spot-bitcoin ETF.
Further Reading
Bitcoin Hits 12-Month High As Crypto Bulls Stay ‘Buzzing’ (Forbes)
BlackRock’s Spot Bitcoin ETF Plan Appears To Be A Case Of Perception Bending Reality (Forbes)
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