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  • North Carolina approves bill on state study of Bitcoin

    North Carolina approves bill on state study of Bitcoin

    • The “State Precious Metals Depository Study” bill received bipartisan support and passed 75-38.
    • North Carolina could look into adding Bitcoin to its State Treasury if the bill is passed.
    • In May, the house voted for another bill that seeks to ban CBDCs in the state. 

    North Carolina’s lower house has passed a bill that could see the state initiate a study into the potential benefits of the state’s Department of State Treasury adopting Bitcoin.

    North Carolina seeks to add BTC to treasury

    The “State Precious Metals Depository Study” bill outlines the custody, insurance and liquidation of crypto assets held by the state. It passed 75-38 with bipartisan support and will now be debated in the Senate.

    If passed, it will open the path for BTC and gold to be considered as assets that can be added to North Carolina’s funds. Specifically, the house’s approval puts North Carolina one step towards adding Bitcoin to the state’s holdings. 

    “This is a very important step to a more formal acknowledgement of #bitcoin in North Carolina. Lots of behind the scenes work,” said Dan Spuller, Head of Industry Affairs at Blockchain Association.

    Spuller noted that the passage of HB721 marks the second time a bill pushed by the North Carolina Blockchain Initiative has received bipartisan support in the General Assembly in 2023.

    In early May, the house unanimously passed HB690, a bill that banned the use of central bank digital currencies (CBDCs) in payments in the state. The bill also bans North Carolina from participating in any testing of CBDC.

    The state of CBDCs globally

    A recent survey showed that 130 countries around the world were in various stages of development towards a central bank issued digital currency. According to US-based think tank Atlantic Council these countries included all G20 members.

    As highlighted here, China’s CBDC pilot continues and has support from country’s major banks. Meanwhile, India and Brazil are set to launch their versions in 2024. 

    The European Central Bank is also looking to begin a pilot for the digital euro and the UK is exploring its “Britcoin” project. In the US, work on a CBDC is advancing only on its use at bank-to-bank level, with the retail digital dollar largely stuck.

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  • Crypto Fear and Greed Index Points to Bitcoin Price Path to $40K

    Crypto Fear and Greed Index Points to Bitcoin Price Path to $40K

    Crypto fear and greed index has moved to the greed area ahead of the upcoming Bitcoin options expiry. Bitcoin price was trading at $30,392 on Wednesday, where it has been in the past few days. This price is a few points below the year-to-date high of $31,478. At its peak, the coin jumped by more than 104% from the lowest level in 2022.

    Fear and greed index points to greed

    The crypto fear and greed index has made a strong recovery in the past few weeks. It has moved from the fear zone of 41 to the greed area of 62. This means that investors are getting modestly greedy helped by the recent ETF news. The most recent Bitcoin news came on Tuesday when Fidelity announced that it had filed its ETF proposal with the SEC.

    Investors believe that a spot ETF will lead to more demand for Bitcoin from institutional investors. Still, this view should be taken with a grain of salt since ProShares Bitcoin Strategy ETF (BITO) has had modest growth in the past few years. It now has about $1 billion in assets. While BITO tracks Bitcoin futures, it has a close correlation with Bitcoin itself.

    The fear and greed index points to more upside for Bitcoin since investors tend to buy it when there is greed in the market. Perhaps, these gains will happen ahead or after the upcoming Bitcoin options expiry scheduled for Friday this week. 

    Data shows that most of these options are calls with a strike price of about $30,000. This explains why Bitcoin has barely moved this week.

    Bitcoin price prediction

    A good technical analysis can help you predict the next price action of a cryptocurrency or other assets. Turning to the daily chart, we see that Bitcoin is oscillating at the 50% Fibonacci Retracement level. This is an important level that traders look at.

    At the same time, this is an important price since it was the highest point on April 14th. Most importantly, the coin has formed what looks like a bullish pennant pattern. Therefore, there is a likelihood that the price will soon have a bullish breakout as buyers target the next key level at $35,000. This price is about 15% above the current level. A move above this level will see it jump to the next resistance point at $40,000.

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  • Bitcoin correlation with gold drops, highlighting risk-on nature remains

    Bitcoin correlation with gold drops, highlighting risk-on nature remains

    Key Takeaways

    • Bitcoin’s correlation with gold is currently at its lowest level since FTX collapsed in November
    • Our Head of Research writes that while one day Bitcoin may become a store of value, the numbers say it currently trades like an extreme risk-on asset
    • Bitcoin lost 76% of its value amid the pullback in risk assets once central banks around the world transitioned to tight monetary policy amid the inflation crisis
    • Meanwhile, gold traded flat and is currently close to all-time highs
    • Bitcoin’s correlation with growth stocks and riskier sectors of the stock market remains tight

    One of the ultimate bull scenarios for Bitcoin is that it morphs into some kind of digital gold. 

    For whatever reason, humans have been obsessed with this weird, shiny metal for thousands of years. Stories date back even further, but we have concrete evidence that gold was an important symbol of wealth in Ancient Egypt in 3000 BC, as well as part of everyday life and mythology. 

    Bitcoin, on the other hand, was not around in Ancient Egypt. Nor was it around for the Middle Ages, the Great Depression in the early 20th century, a World War (yet?), the inflation and energy crisis of the 1970s, and it even missed most of the subprime mortgage crisis of 2008. 

    In fact, Bitcoin was launched in January 2009, the Genesis blocked mined only two months before the stock market bottomed. Over the next twelve years, not only did the stock market recover, but it went absolutely bananas. Between the 2009 trough and the peak at the end of 2021, the S&P 500 multiplied 7X while the Nasdaq jumped nearly 13X. In other words, Bitcoin was launched into one of the most explosive and longest bull markets in history. Until 2022, it had never known anything but basement-level interest rates and up-only markets. 

    Gold’s hedge properties are what Bitcoin seeks

    Once 2022 came, risk assets sold off. The Nasdaq shed a third of its value; the S&P 500 fell 20%. Bitcoin had dipped plenty before, but make no mistake: this was the first time it was staring a bear market in the wider economy in the face.

     Despite certain enthusiasts claiming Bitcoin would act as a hedge asset, this did not happen. By the end of 2022, Bitcoin was 76% off its high. In the most explosive inflationary environment since the 1970s and Bitcoin’s first bear market, the asset was getting crushed. There was no debate: Bitcoin was trading like a risk-on asset. And today, it still is.  

    That is not to say that the narrative could flip in the future. Personally, that is what I view as Bitcoin’s upside: a store of value akin to gold. But while we can debate whether that may one day happen, it is unequivocal that Bitcoin currently trades like a risk-on asset. These are the facts of the case, and these are undisputed, to borrow Kevin Bacon’s phrase from the absolute classic that is A Few Good Men. 

    Gold, on the other hand, traded flat during 2022, and is currently trading close to all-time highs. 

    Bitcoin and gold correlation dipping

    For all the reasons discussed above, the correlation between gold and Bitcoin is particularly interesting to track. Using the 60-Day Pearson indicator, I have plotted it on the below chart. 

    Immediately, the past month jumps out. The correlation was a near-perfect 0.86 at the start of June, and had been around this level since late April. And then, it fell. It currently sits at 0.16, the lowest mark since FTX collapsed in November, sending the crypto market into a tailspin. But why?

    Well, I don’t really know. And that is kind of the point. Bitcoin, as it tends to do sometimes, is rising at the moment. Most likely, this is due to news of asset managers Blackrock and Fidelity filing ETFs, but maybe it’s just Bitcoin doing its thing. Perhaps it is merely bouncing back from the sharp fall it took after the Binance and Coinbase lawsuits were announced back-to-back two weeks ago. 

    But if we stretch out the time horizon on the previous graph, we see that the correlation between gold and Bitcoin bounces around a lot.

    It is challenging to put any pattern on that, to say the least. I thought I might try a different metric, so in the next graph I have used 90-Day Pearson instead of 60-Day. Predictably, the trend is less volatile, but there still appears to be no meaningful relationship here. 

    I think it’s pretty clear that assessing the correlation coefficients directly proves that there is zero positive relationship between these two assets. 

    Federal Reserve holds the key

    In truth, I believe this actually says more about gold than Bitcoin. Gold is in a funny place at the moment, trading more off expectations of inflation and interest rate movements rather than current conditions. The correlation between gold and the stock market is therefore higher than what we have typically seen in the past. This is why we are seeing gold often advance when soft CPI numbers are announced, or when dovish Fed comments surface regarding interest rate policy.

    If we step back and look at the big picture, it really is not complicated. Bitcoin has gone from $68,00 in November 2021, when money was cheap and risk assets were trading at outrageous valuations, to $15,500 last November, seven months into the swiftest hiking cycle in recent memory and the worst inflation crisis in 50 years. Then, it doubled to $30,000 as inflation numbers fell away and expectations around the length of the hiking cycle softened. 

    Along with all the fakeouts and reverberation in between, that is a hell of a lot of movement and clearly trading like an extreme-risk asset. Meanwhile, gold has been far less volatile, relatively range-bound between $1,600 and $2,000 for three years now. 

    Again, while Bitcoin may one day seize the crown of an uncorrelated asset, or a portfolio hedge to inflation, that is clearly not the case today. The below chart is the simplest method of all to show this, plotting Bitcoin’s hand-in-hand relationship with the tech-heavy Nasdaq composite since the economy transitioned to this risk-off, tight monetary policy period. 

    A few months ago, Bitcoin rose during the banking crisis, sparking some to declare it as decoupling from risk assets and the fiat world. As I wrote back then, this is nothing more than wishful thinking. Rather, it moved off expectations that the Fed would not be able to hike as aggressively in future if banks were going under due to the strain of these higher rates (indeed, soon after, the correlation rose back up).

    The latest dip in correlation with gold, falling back down from the ultra-high 0.86ish value it has been for six weeks or so, is similar. There is nothing ambiguous about the situation at the moment – Bitcoin is trading like a risk-on asset. It may one day claim that coveted title of digital gold, but right now it is nowhere near.

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  • Here’s why the Bitcoin Cash (BCH) price has just gone parabolic

    Here’s why the Bitcoin Cash (BCH) price has just gone parabolic

    • Bitcoin Cash price has been in a strong bullish trend in the past few days.

    • The coin has surged by over 150% from the lowest level in May.

    • This rally is being supported by the Bitcoin ETF applications.

    Bitcoin Cash price continued surging on Monday even as BTC and other cryptocurrencies moved sideways. The BCH coin jumped to a high of $228.72, the highest level since May 14th of last year. In all, the coin has jumped by more than 150% from the lowest level in May, making it one of the top-performing cryptocurrencies in the world.

    BCH rally continues

    Bitcoin and other cryptocurrencies have been in a strong bullish trend in the past few days. This rally is mostly because of the recent crypto news. Companies like Blackrock, WisdomTree, and Invesco announced plans to launch their Bitcoin ETF. If this is accepted, it will likely help many institutional investors allocate funds to Bitcoin.

    These ETF proposals do not impact Bitcoin Cash directly. However, analysts believe that these companies will file their Bitcoin Cash spot ETF proposals if the Bitcoin one is accepted. Bitcoin Cash, as with BTC, is seen as a commodity since it is a hard fork of Bitcoin itself.

    Other cryptocurrencies that could benefit in all this are Litecoin, Bitcoin SV, and Ethererum Classsic. There are concerns that Ethereum will be avoided because of its staking feature, which SEC believes contravenes securities law.

    Bitcoin Cash price also jumped after it became one of the four cryptocurrencies offered by EDX Markets, the new Fidelity, Schwab, and Citadel-backed crypto exchange. The other cryptocurrencies offered by the exchange are Ethereum, Bitcoin, and Litecoin.

    Further, Bitcoin Cash is doing well since it has a lower price than Bitcoin itself. The BTC and BCH ratio currently stands at 131, meaning that 1 Bitcoin is worth about 131 BCHs. 

    Bitcoin Cash price prediction

    The 4H chart shows that the Bitcoin Cash price has been in a strong bullish trend in the past few days. It has jumped above the important resistance point at $124, the highest point on May 9th. The coin has moved sharply above the 25-day and 50-day moving averages (MA).

    It has also invalidated the upper part of the double-top pattern at $221.10. This was an important level since it was the highest level last week. The Relative Strength Index (RSI) has moved above the overbought level.

    Therefore, there is a likelihood that the BCH price will continue rising as buyers target the next key resistance point at $250. A move below the double-top neckline at $184 will signal that there are more sellers left in the market.

    How to buy Bitcoin Cash

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  • Bitcoin hard forks, Bitcoin Cash and Bitcoin SV in the spotlight with double-digit gains

    Bitcoin hard forks, Bitcoin Cash and Bitcoin SV in the spotlight with double-digit gains

    • At press time, BCH price had risen by 52% in the last seven days and 28% in the last 24 hours.
    • BSV, on the other hand, had gained 77% in the last seven days and 30% in the last 24 hours
    • Bitcoin (BTC) has only gained 15% over the last seven days.

    Recently, attention has been focused on Bitcoin (BTC) and its hard forks, Bitcoin Cash (BCH) and Bitcoin SV (BSV) that split off from the main chain. In the last seven days, the prices of BSV and BCH have skyrocketed, outperforming even BTC.

    Despite the markets showing a consolidated trend after the recent price movements, prices of most cryptocurrencies are still skyrocketing with BCH and BSV being among the top three gainers today falling behind Waves (WAVES) which has shot up by 85% today.

    Crypto market breakout after US SEC onslaught

    The SEC lawsuits against Binance and Coinbase for allegedly violating US rules and regulations sent the markets into a sharp decline.

    However, the drop did not last long. The prices were up again after industry heavyweights like BlackRock, Invesco, and WisdonTree threw their weight behind the industry. The other force behind the current crypto market boom is the emergence of China back into the cryptocurrency space.

    China’s stand on cryptocurrencies

    The historical relationship between China and cryptocurrencies has been quite complicated, with frequent bans that have always had an effect on the entire crypto market.

    China has a history of opposing cryptocurrencies despite the fact that it was once the bedrock of most crypto activities including Bitcoin mining. The People’s Bank of China (PBC) made its initial attempt in 2013 when it forbade financial institutions from dealing in virtual currencies. Afterwards, authorities tightened their regulations of cryptocurrencies in 2017, especially targeting Initial Coin Offerings (ICOs).

    Later in 2021, China took the toughest action and outlawed cryptocurrency mining causing a more than 50% decline in the crypto markets.

    But recently, China has changed how it views cryptocurrencies. Beijing recently published a whitepaper titled “Web3 Innovation and Development White Paper (2023)” that promoted Web3 technology as a crucial element of the internet’s future development.

    If China was to completely lift the crypto ban or ease its stand, the global markets could be deeply impacted, stimulating global demand and boosting prices. However, at the moment, everything is still surrounded by speculations going by what has been happening.

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  • Bitcoin soars as SEC allows first leveraged Bitcoin Futures ETF

    Bitcoin soars as SEC allows first leveraged Bitcoin Futures ETF

    • Bitcoin rose to above $31,450 on Friday, its highest level since June 2022.
    • BTC price spiked to the year-high level after the SEC allowed the Volatility Shares 2x Bitcoin Strategy ETF, or BITX.
    • This is the first leveraged Bitcoin Futures ETF in the US and comes after this week’s BlackRock-fueled bullish sentiment for the crypto market.

    Bitcoin smashed past the $31,000 level on Friday afternoon as the market reacted to the latest news about the US market’s first leveraged Futures Bitcoin exchange traded fund (ETF).

    The upside pushed BTC price to highs of $31,458 on crypto exchange Bitstamp, with the flagship cryptocurrency’s price setting a new year-to-date high and its highest level since June 2022. BTC traded at $31,170 at the time of writing, about 4% higher in the past 24 hours but an impressive 87% up YTD.

    SEC approves first leveraged Futures Bitcoin ETF

    On Friday, June 23, the US market entered a new chapter in crypto investing when the first leveraged Bitcoin Futures ETF became effective. The Volatility Shares 2x Bitcoin Strategy ETF, or BITX, will begin trading on Tuesday 27 June and will allow its investors an exposure to Bitcoin with daily returns.

    Instead of investing directly in Bitcoin, BITX will “seek to benefit from increases in the price of Bitcoin Futures Contracts,” per details of the Fund in the prospectus filed with the SEC. The 2x Bitcoin Strategy ETF will align with the CME Bitcoin Futures Daily Roll Index.

    Bitcoin has led the market higher over the past week or so, riding on the bullish sentiment triggered by $9 trillion asset manager BlackRock’s filing for a spot Bitcoin ETF. BlackRock has a very high rate of success with ETF applications, the reason for the market’s optimism. 

    Analytics platform IntoTheBlock pointed out what a spot ETF would mean for Bitcoin adoption and price.

    Indeed, the asset manager’s filing paved way for a frenzy of spot ETF applications from several other Wall Street giants and global financial institutions. With BTC price in bullish momentum, its likely the market could see many more mega moves by smart money.

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  • Bitcoin is like ‘high-flying, high-beta tech stock’

    Bitcoin is like ‘high-flying, high-beta tech stock’

    bitcoin is like high beta tech stock anastasia amoroso
    • Anastasia Amoroso explains why bitcoin has been on a tear recently.
    • She sees the world’s largest cryptocurrency as a tech asset.
    • Bitcoin is currently up roughly 80% versus the start of the year.

    Bitcoin has been on a tear ever since the Federal Reserve skipped a rate hike for the first time since March 2022.

    Anastasia Amoroso shares her view on BTC

    Another potential reason why the cryptocurrency has been in favour recently is because the central bank is now closer to the end of its cycle that typically tends to draw interest into the risk-on assets.

    Most importantly, the recent strength is a proof that crypto as an ecosystem has stood the test of time, as per Anastasia Amoroso – the Chief Investment Strategist at iCapital.

    “The fact that institutional investors are still stepping into the space and bitcoin tells you that this is an asset class that is most likely here to stay.”

    Earlier this week, Fed Chair Jerome Powell also agreed that cryptocurrencies seem to have some staying power (read more).

    Anastasia Amoroso sees bitcoin as a tech asset

    Bitcoin has gained sharply even though the U.S. Securities & Exchange Commission sued both Binance and Coinbase this month.

    Part of the reason may be because neither of those lawsuits categorized it as a security. If anything, investing in Bitcoin is more akin to adding a high-flying tech stock to your portfolio, added Amoroso on Yahoo Finance Live.

    There’s a technological aspect to bitcoin. But there’s also volatility that is associated with it that is much more in line with a high-flying, high-beta tech stock than anything else.

    She also dubbed the recent regulatory crackdown a net positive for the crypto market in the long run on Thursday.

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  • CleanSpark to acquire two Bitcoin mining campuses for $9.3M

    CleanSpark to acquire two Bitcoin mining campuses for $9.3M

    • CleanSpark will complete the $9.3 million all-cash deal for the two turnkey Bitcoin mining facilities this week.
    • The facilities in Dalton, Georgia, will host 6,000 Antminer S19 XPs and S19J Pro+ rigs.
    • CleanSpark CEO Zach Bradford says the deal puts the miner on track to reach its year-end hashrate target of 16 EH/s

    CleanSpark (NASDAQ: CLSK), one of the largest Bitcoin mining firms in the world, has announced the acquisition of two BTC mining campuses in Dalton, Georgia.

    The company said in a press release that it had struck a definitive agreement to purchase the two turnkey facilities for $9.3 million, an all-cash deal expected to close later this week.

    CleanSpark targets 16 EH/s by end of year

    According to the miner, the two campuses are set to host over 6,000 Antminer S19 XPs and S19J Pro+s, and will see the mining giant add just under 1 exahashes per second (EH/s) to its hashrate.

    “This acquisition ensures that we have more than enough infrastructure to reach our year-end target of 16 EH/s. It also continues to position us as one of the most power-efficient miners on an energy-per-hashrate basis,” Zach Bradford, CEO of CleanSpark, said in a statement.

    CleanSpark’s latest purchase adds to multiple previous buys and acquisitions secured over the past several months. After purchasing 20,000 Antminer S19j Pro+ machines for $43.6 million in February, the company added 45,000 Antminer S19 XP units worth $144.9 million in April. In May, it bought 12,500 Antminer S19 XP rigs.

    CLSK traded at $4.86, up 10% on the day on Wednesday. The crypto stock has rallied more than 140% in 2023 and analysts expect it to reach $12.

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  • Bitcoin mining stocks are far riskier than Bitcoin itself

    Bitcoin mining stocks are far riskier than Bitcoin itself

    Key Takeaways

    • Bitcoin mining stocks have underperformed Bitcoin heavily over the last year

    • Greater competition among miners and higher amounts of energy required means margins are thinner

    • Rising electricity costs and lower value of Bitcoin have also hurt miners immensely 

    • Greater number of variables beyond merely the price of Bitcoin means mining stocks have been trading with greater volatility

    It’s a tough time to be a Bitcoin miner. This piece will succinctly break down how and why, as well as delving into why I believe mining stocks are far riskier than just investing in Bitcoin itself. Let’s get to it. 

    Mining competition is higher than ever

    Firstly, the competition within mining is higher than ever before. The beauty of the blockchain is that we can see all sorts of statistics regarding the Bitcoin network in real-time. One of these is the difficulty adjustment. For the uninitiated, the difficulty adjustment is a mechanism by which the difficulty of mining changes to ensure the new supply of Bitcoin released via mining remains consistent (at approximately ten-minute intervals).

    In other words, as more miners join the network, the difficulty increases so that Bitcoin is released at the same pace as prior. The same holds true the other way around – difficulty falls if miners stop operating. 

    As the below chart shows, Bitcoin mining difficulty recently smashed through the 50 trillion hash mark for the first time ever. Only three years ago, that number sat at 14 trillion.  

    This is great for the Bitcoin network: the more miners, the more secure the network. For the miners themselves, however, that means greater energy amounts are needed to complete this now-more-difficult assignment of validating transactions on the network. 

    Oh, and there is a double whammy. As you may realise if you have turned on a light, charged your phone or boiled a kettle in the last year, the price of electricity has skyrocketed around the world. The next chart shows the rise in electricity costs in the US, which according to the Cambridge Electricity Consumption Index, has the highest amount of miners (the nation is responsible for 38% of the network’s hash rate). 

    This means that higher amounts of energy are needed to mine, and the cost of that energy has also increased drastically. 

    People are using Bitcoin less 

    So, we know costs have risen. But the bad news isn’t over yet. 

    Bitcoin’s volumes have collapsed throughout the bear market. Perhaps the best barometer of this is to look at the trading volume on centralised exchanges, which fell 46% in 2022 compared to 2021. 

    Looking at Bitcoin fees shows a similar pattern, with fees far down on the heyday of the pandemic bull market. This was briefly interrupted in May when the Bitcoin Ordinals protocol sparked a revival in network activity. However, the below chart shows that fees have been falling for five consecutive weeks since (although they are still up significantly on the start of the year), giving up most of those gains. 

    Much like the cost side, which saw an increase in inputs required (greater demands via the difficulty adjustment) as well as an increase in the per-unit costs of those inputs (rising electricity costs), the revenue side for miners is also suffering from a brutal double whammy. 

    Not only is volume way down from the bull market and hence less fees (revenue) are recouped, but miners’ revenue (fees and the block subsidy award) is received in Bitcoin, which has also fallen in value. This means that, after earning Bitcoin by battling with the greater competition and toiling over increased costs, the value of that Bitcoin (revenue) on the market is substantially less – still 60% off its peak from November 2021. 

    Mining stocks are more volatile than Bitcoin

    So let’s think about these four variables:

    1. The amount of energy needed
    2. The cost of that energy (electricity)
    3. The fees and block rewards received (i.e. revenue)
    4. The value of those fees and block rewards (the Bitcoin price)

    Therefore, not only are mining companies dependent on the price of Bitcoin (variable number four), but it also depends on several other factors (admittedly variables 1 and 3 are heavily dependent on the price of Bitcoin too. In truth, economic incentives will drive mining to a certain price point, but I will discuss in another article). 

    Therefore, for the time being at least, the risk is greater with mining stocks than a direct investment in Bitcoin. As with all things, greater risk can mean greater reward, and there have been periods of mining stocks outperforming Bitcoin as a result. 

    However, over the last year or so, mining investors are in an even worse state than Bitcoin investors (who themselves are licking their wounds). I’ll let the below mining ETF, launched in February 2022, illustrate this:

    All this goes to show how tough mining has been. And that is without even mentioning the big bad wolf that is regulation. The regulatory crackdown in the US has been ferocious, and while Bitcoin has thus far been relatively unaffected, miners are more vulnerable (especially those that are publicly listed in North America) than Bitcoin itself, which is a decentralised asset theoretically immune to regulation (directly, at least). 

    This is not meant to be a pro-Bitcoin or anti-mining piece. It is just comparing the two as investments and showing why mining stocks tend to be more volatile. And when you’re more volatile than Bitcoin, that is really saying something.        

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  • Why is Bitcoin price up today?

    Why is Bitcoin price up today?

    Key takeaways

    • Bitcoin briefly touched the $29k level on Wednesday after rallying by more than 6% in the last 24 hours.

    • The rally comes after BlackRock filed for a Bitcoin ETF and Fidelity, Schwab, and Citadel backed a crypto exchange.

    Institutional interest pushes Bitcoin higher

    Bitcoin has been performing well since the start of the week and set a new milestone a few hours ago. The leading cryptocurrency touched the $29k level for the first time since May after adding more than 6% to its value over the last 24 hours.

    At press time, the price of Bitcoin stands at $28,834 per coin. Bitcoin reached a daily high price of $29,110 a few hours ago before retracing to currently trade above $28,800 per coin.

    The rally comes as institutional interest in the cryptocurrency market increased in the last few days. 

    Earlier this week, BlackRock, the world’s largest asset management firm with nearly $10 trillion in assets under management, applied with the US Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF). 

    The SEC has rejected all the spot Bitcoin ETF applications filed over the years. However, market participants are optimistic that the SEC could approve BlackRock’s application due to the company’s standing.

    A few hours ago, EDX Markets, a crypto exchange backed by Fidelity, Schwab, and Citadel, also went live. 

    The increased interest in the crypto market by traditional financial institutions fueled Bitcoin’s rally over the last 24 hours. 

    Bitcoin Eyes $30k

    Bitcoin could be looking to break past the $30k psychological level in the near term if the current market momentum is maintained. The technical indicators currently show that Bitcoin is bullish.

    If the Bulls can maintain the current market sentiments, Bitcoin could rally toward the $30k level in the next few hours. 

    The total cryptocurrency market cap surged past the $1.1 trillion mark a few hours ago as Bitcoin and the other leading cryptocurrencies rallied. 

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