Bitcoin hit its highest level in a year, despite challenges facing the industry. According to Bloomberg data, the first cryptocurrency topped $31,013, reaching its highest level since June 2022. This rally brought the price of bitcoin to around $31,307, representing an 80% increase since the beginning of the year. . Other cryptocurrencies, such as ether, also saw significant increases.
This remarkable advance demonstrated the resilience of a market that many had considered extinct after a series of scams and company failures that left a stain on the sector in the eyes of investors.
“From the bitcoiners’ point of view, the token’s most fundamental investment thesis was coming true: inflation, monetary mismanagement, banking crises, sovereign debt anxiety, doubts about the state of bitcoin reserves. US dollars were contributing to cryptocurrency enthusiasts experiencing an ‘I told you so’ moment,” said Strahinja Savic, head of data and analysis at FRNT Financial. “I wouldn’t describe the rally to new all-time highs despite the difficult environment, but rather thanks to it.”
Recently, news of BlackRock’s surprising unveiling of a spot bitcoin ETF in the United States reignited cryptocurrency fervor, as some in the market hoped that such a product, which currently did not exist, would gain recognition. regulatory approval. An approval, whatever the odds, would be a victory for fans who had longed for such an investment product for years.
“BlackRock’s filing is great news for bitcoin due to its close ties to regulators and strong track record of ETF approval,” escribieron Bendik Schei y Vetle Lunde de K33.
They added: “An approval would have a profound impact on bitcoin’s market structure, as it would lower the barriers for financial advisors to offer exposure to BTC through an affordable investment vehicle with daily creations and redemptions delivered by a trusted issuer.”
Other recent news also bolstered crypto believers’ faith in the rally. A new cryptocurrency exchange platform backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp., called EDX Markets, announced that it had gone live. And, among other firsts, JPMorgan expanded one of the most high-profile projects to bring blockchain technology to traditional banking, introducing euro-denominated payments for corporate clients using its JPM Coin.
“The effects of the so-called ‘crypto winter’ seem less persistent today than a year ago, as various jurisdictions and institutional players continue to adopt cryptocurrency-related initiatives,” said David Duong, Coinbase’s head of research, in a recent note.