Bitcoin has been booming in the market again since November 2021. It has reached its record-high time rise today with a 6 % high to over $ 67,500. Last month it spiked to $ 51,000 after the US security exchange approved the spot bitcoin exchange surge the bitcoin rallied the crypto world.
Now it is 2% below reaching its record high of around $ 69,000. Bitcoin market cap reached a record high of $1.29 trillion on Monday which is more than 3 times higher with $320 billion in the year 2022. Many big investors like Black Rock investment firms are the key players that rally the surge of Bitcoin this year.
Turning Point in Bitcoin: US Security Exchange & Commission Approved the Spot Bitcoin ETF
Bitcoin has seen its rapid surge this year since the US Security & Exchange Commission approved the Bitcoin spot ETF. The 11 ETFs applied an application in the SEC to get an exchange-traded fund for Bitcoin approved, so the Bitcoin exchange could be tracked by the SEC, and firms & investors could be saved from the risk associated with the direct purchasing of Bitcoin.
Now the Bitcoin exchange is under the surveillance of the SEC and investors could be saved from red flags associated with the crypto market. Now the Bitcoin ETFs are listed in the New York Stock Exchange, Nasdaq, and Chicago Board Options Exchange ( CBOE).
Many big firms like Black Rock, Ark Investments, Fidelity, Invesco VanEck, and other big investors of Wall Street allow the investors to be the main force behind the bitcoin spot ETFs.
Since its approval, we have seen a large liquidity in the Bitcoin spot exchange as many investors investing in the spot Bitcoin exchange.
These 11 firms manage the spot bitcoin ETF that issues the shares of their own Bitcoin that are purchased through the stock exchange or an authorized cryptocurrency exchange.
The Key Reason Behind Surplus Hike in the Bitcoin
Three factors govern the Bitcoin price hike in the market, as the market has seen the price hike to $67,500. There could be a few reasons behind it.
First US Security of Exchange (SEC) approves the Spot Bitcoin exchange, which is the driving factor in the Bitcoin price hike in the crypto market.
Second, the giant Wall Street biggest crypto asset managers like Black Rock & Grayscale manage the spot bitcoin exchange-traded funds (ETFs) which gain the trust of a large section of investors to invest in the Bitcoin spot ETFs.
Third anticipation of the Federation cut rates in 2024.
Fourth is the upcoming Bitcoin halving where the reward for mining bitcoin is cut in half.
According to Markus Thielen head of the research at 10x “ It’s not all about US ETF either, BlackRock just launched a spot ETF in Brazil last week and volumes in Korea have exploded to $ 8 billion per day for five straight days versus less than $1 billion previously.
BlackRock an asset management investment company that offers Bitcoin spot ETFs becomes the fastest ETFs in history to reach $10 billion in assets under management.
According to Laila Maidan, an Investing correspondent at Insider told CBS News “To be sure, bitcoin’s ongoing price surge doesn’t make the cryptocurrency any less volatile when the cryptocurrency broke $41,000, which was its highest value in 19 months at the time. It doesn’t mean the crypto is going to skyrocket and stay high, It’s still volatile and there’s a lot of people who will always trade it.”
The recent surge in the Bitcoin world due to the entry of bitcoin spot ETFs in the exchange market gives hope to many investors to invest in it. Many investors lost their assets in 2022 as the FTX crypto token whose value was $10 billion in 2021 now become worthless due to the bankruptcy. Binance whose market value is 40% below its 2021 value because last year it was involved in so many legal troubles. Lastly Dodge coin which is the meme coin, that was upscale by Elon Musk now seeing its value 40% down from its Nov. 2021 market value of almost $40 billion.