Bitcoin has made a significant breakthrough by breaching the $30,000 mark today, marking a major milestone after nearly two months of turbulence in the crypto market. This recovery has led to short liquidations of around $200 million in the last 24 hours, which demonstrates a renewed interest on the part of investors in the main cryptocurrency.
But… What is the reason for this impulse?
BlackRock, the renowned asset management company with an impressive valuation of $9 trillion, has taken a bold step into the world of cryptocurrencies by filing an application for a Bitcoin exchange-traded fund (ETF). Determined to harness the growth potential and rising popularity of the world’s leading cryptocurrency, BlackRock seeks to bridge the gap between traditional finance and digital assets.
In its search for a Bitcoin ETF, BlackRock plans to collaborate with Coinbase Custody, a leading cryptocurrency custody platform, to ensure the security of the underlying assets.. This strategic partnership demonstrates BlackRock’s commitment to the integrity and security of digital assets.
Additionally, BlackRock will leverage spot market data from Coinbase, one of the largest cryptocurrency exchanges globally, to set prices for its Bitcoin ETF.
2. WisdomTree files application for a Bitcoin spot ETF.
Asset manager WisdomTree has filed an application with the United States Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF called WisdomTree Bitcoin Trust. This news has generated great expectation in the cryptocurrency market, as it follows in the footsteps of BlackRock, as we have seen before.
WisdomTree plans to list the ETF on the Cboe BZX Stock Exchange. The request marks the return of WisdomTree to the Bitcoin ETF market after an earlier rejection in 2021.. This trend of asset managers applying for Bitcoin ETFs is expected to influence the widespread adoption of these funds and offer new investment opportunities in the cryptocurrency market.
3. secAccording to Jerome Powell, the Federal Reserve views stablecoins as private money.
During his semi-annual testimony on monetary policy, the Chairman of the United States Federal Reserve, Jerome Powell made a prominent statement stating that he views stablecoins as a form of money. This statement reinforces Powell’s earlier comments on the subject and sheds light on the Federal Reserve’s stance towards stablecoins and its economic implications.
In his appearance before Congress, Powell mainly discussed interest rates and the Federal Reserve’s decision to pause raising interest rates. However, he also took the opportunity to delve into the topic of stablecoins, reiterating the Federal Reserve’s view that they are indeed a form of money.
Bitcoin’s resurgence above $30,000 marks a significant moment for the crypto market. This advance has led to sizable short sell-offs and generated new momentum in the market.
Furthermore, the positive performance of other crypto assets indicates increased confidence and optimism in the future of the industry. As Bitcoin continues to lead the way, investors and cryptocurrency enthusiasts will be keeping an eye on upcoming developments in the market and how these could influence the broader crypto landscape.