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- Bitcoin (BTC) experiences a significant surge, surpassing $30,000 levels amid the spot Bitcoin ETF filings by multiple financial giants.
- The entry of traditional financial players into the cryptocurrency market, along with positive remarks from Federal Reserve Chairman Jerome Powell on stablecoins, contributes to the current rally.
The world’s largest cryptocurrency Bitcoin (BTC) continues on its strong upward momentum gaining another 5 percent and shooting past $30,000 levels in the last 24 hours. As of press time, BTC is trading at $30,107 with its market cap at $585 billion.
BlackRock’s application of a spot Bitcoin ETF last week has triggered the recent price rally in Bitcoin. Following BlackRock, a number of other financial giants also filed with the US SEC, for a spot Bitcoin ETF. This includes the likes of WisdomTree, Fidelity, Bitwise, and Valkyrie.
All these filings have fueled further optimism among Bitcoin investors triggering the current price rally. In addition to the price breakthrough, there has been a significant rise in Bitcoin Network activity. According to data from The Block, the number of transactions increased from 385,000 on June 14 to 435,000 on June 20, marking a 13 percent growth. This surge in activity coincides with asset manager BlackRock’s recent filing for a spot bitcoin ETF.
In an email to CoinDesk, Nihar Neelakanti, the CEO and co-founder of carbon-backed digital collectibles Ecosapiens, wrote:
There is a wave of optimism in the crypto market now that big institutional players are working to take part in the industry in a big way. These players, among other big names, are obviously going to add a lot of liquidity to the market and make investors more confident to buy bitcoin again. And big institutions partnering with crypto are going to continue to be a catalyst for bitcoin for the foreseeable future, even as the U.S. regulatory situation continues to cause some hardship for the industry.
The TradFi Push Into Crypto and Fed Chair on Stablecoins
The recent push by traditional financial (TradFi) players into cryptocurrencies has been the reason behind the current crypto market rally. Some market analysts believe that TradFi’s participation in crypto will completely restructure the market, with more investors having access to digital assets.
Ruslan Lienkha, chief of markets at Web3 crypto and fiat service provider YouHodler said: “It seems that the crypto market is going to be completely restructured in the country by the biggest investment firms in the near future. More investors will have access to crypto investments with much lower risks. Important to notice that a very small percentage of BlackRock or Fidelity clients interested in spot BTC ETFs are enough to move the price further north.”
On the other hand, the commentary on stablecoins by Fed Chairman Jerome Powell brought some optimism to the market. Powell said that he does identify stablecoins as a form of payment.
