Bitcoin experienced significant gains during the week, reaching a value above $30,000 for the first time since July. This surge of over 10% occurred amidst a period of volatile trading across various cryptocurrencies. Bitcoin, the most widely circulated cryptocurrency, reached a peak of $30,022, its highest level since July 23, and was up 4% for the day.
The surge in Bitcoin’s price was not immediately attributed to any specific news event. The cryptocurrency is renowned for its price volatility and the lack of transparency in its markets, making it susceptible to rapid fluctuations.
Investor confidence in broader financial markets has been uneasy recently, influenced by factors such as the conflict in the Middle East, an increase in benchmark U.S. 10-year yields approaching 5%, and apprehension about the potential for interest rates to remain elevated for an extended period. The Bitcoin markets have been particularly volatile this week, with investors anxiously anticipating updates regarding the approval of applications for a spot bitcoin exchange-traded fund (ETF) by prominent financial institutions, including BlackRock, from the U.S. Securities and Exchange Commission (SEC).
Crypto investors have suggested that the approval of these applications could potentially attract a fresh influx of capital into the cryptocurrency market. As eToro strategist Ben Laidler noted, crypto assets have been displaying a tendency to deviate from the broader sell-off trends observed in stocks and bonds.
Instead, investors are honing in on upcoming catalysts, such as the possible SEC endorsement of a spot ETF. Bitcoin experienced a sharp increase in value on Monday; however, it subsequently relinquished most of those gains following the refutation by asset manager BlackRock, which denied the validity of a crypto media report claiming that its highly publicized ETF application had been greenlit.
The news was reported by Tom Wilson and Elizabeth Howcroft, with editing done by Amanda Cooper.