The cryptocurrency market saw a bull run with major tokens gaining double digits following the rising interest of big institutions in the sector. According to data from CoinMarketCap, Bitcoin has gained over 17 per cent in the last seven days. Ethereum, the second largest crypto coin as per market cap, was up over 12 per cent.
On Friday, Bitcoin and Ethereum were trading at $30,023 and $1,876 respectively. Cardano, Solana, Litecoinand Polkadot also registered double-digit gains in the last week.
“The surge comes after the recent filing of spot bitcoin ETF applications by BlackRock, Invesco, and other large asset management firms has given investors hope that the crypto market is starting to recover,” the research team of crypto exchange CoinDCX told Business Standard.
Spot bitcoin ETFs are designed to track the price of bitcoin directly, and their approval would allow investors to buy and sell bitcoin through traditional brokerage accounts.
According to Edul Patel, co-founder and chief executive officer (CEO) of crypto platform Mudrex, Deutsche Bank’s announcement of applying for crypto custody services in Germany also played a role in boosting the investors’ confidence in the industry.
“Bitcoin has crossed the $30,000.01 mark, demonstrating its stability and resilience in the face of market fluctuations,” said Shivam Thakral, CEO of crypto exchange BuyUcoin.
The SEC approval of BlackRock’s application may take months and is still uncertain but according to Parth Chaturvedi, investments lead at CoinSwitch Ventures, the timeline is overlapping with the scheduled date of Bitcoin’s halving and is keeping investors motivated. The largest crypto token is expected to be halved in April 2024.
“The institutions have finally arrived big time, and BTC is of particular interest in all these developments, given that there is some clarity on its classification as a commodity. Even though the SEC approval for a spot Bitcoin ETF is still months away (and uncertain), the timeline overlapping with BTC Halving in April 2024 is really building the ‘bull case’ for Bitcoin prices. This is also being manifested in Bitcoin’s rising dominance of overall crypto markets,” he said.
After the network mines 210,000 blocks—roughly every four years—the block reward given to Bitcoin miners for processing transactions is cut in half, it is called Bitcoin halving.
It cuts the rate at which new bitcoins are released into circulation in half. This usually results in the price of the token going up immediately. The last halving took place on May 11, 2020.
However, experts also said that to maintain the bull run, Bitcoin will need to maintain its position.
“To maintain its positive momentum and reach new annual highs, Bitcoin needs to solidify its position above the critical level of $30,000,” Patel said.
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