Bitcoin, the leading cryptocurrency, witnessed a surge in value on Friday, surpassing the $30,000 threshold for the first time since July. This surge contributed to an overall gain of over 10 percent for the week, amidst a backdrop of turbulent trading within the cryptocurrency market.
At its zenith, Bitcoin recorded a remarkable value of $30,022, marking its highest point since July 23. By the close of trading, it had risen by 4 percent for the day. Joseph Edwards, Head of Research at London-based crypto firm Enigma Securities, noted the lack of concrete news explaining this upswing. He pointed out that Bitcoin is notorious for its erratic trading behavior and the opacity of its markets.
Broader financial unease has permeated the market in recent times, with investors grappling with uncertainties surrounding the Middle Eastern conflict, U.S. 10-year yields inching towards five percent, and speculations about the duration of elevated interest rates.
The week’s Bitcoin trading has been particularly turbulent, with enthusiasts closely monitoring applications pending before the U.S. Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF) endorsed by major players such as BlackRock. Advocates contend that SEC approval of these applications could trigger a fresh wave of investment within this asset class.
Discussing recent trends of divestment from stocks and bonds, eToro strategist Ben Laidler commented, “Crypto assets are increasingly bucking the overall trend, as investors are starting to focus on near-term catalysts such as a possible approval for a spot ETF from the SEC.”
On Monday, Bitcoin experienced a sudden upswing followed by a swift reversal, following asset manager BlackRock’s decision not to confirm a media report claiming acceptance of its ETF application. While definitive confirmation or denial must originate from the SEC directly, investors maintain an optimistic outlook, closely monitoring cryptocurrency values in the hope that the introduction of a high-profile ETF in the market could provide stability in a landscape marked by uncertainty.