In a significant market development, Bitcoin has exceeded the $30,000 milestone for the second time this year, propelled by an optimistic outlook following the entrance of several traditional finance (TradFi) players into the cryptocurrency sphere. TradingView data confirms that the last time Bitcoin crossed the $30,000 threshold was in April of this year.
Ruslan Lienkha, Chief of Markets at YouHodler, a Web3 crypto and fiat service provider, expressed his belief in the transformation of the crypto market through the involvement of major investment firms. In an email to CoinDesk, Lienkha stated, "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."
The recent surge in Bitcoin's value can be attributed to the filing of spot Bitcoin ETF applications by prominent TradFi giants such as BlackRock, Invesco, and WisdomTree. Additionally, EDX, a crypto exchange backed by major TradFi players including Fidelity Digital Assets, Charles Schwab, and Citadel Securities, was launched on Tuesday. The exchange will offer four tokens in the United States: Bitcoin, Ether, Bitcoin Cash, and Litecoin. As a result of these developments, Bitcoin Cash (BHC) also experienced a rally, recording a 25% gain on the day.
Despite the regulatory crackdown by the United States Securities and Exchange Commission (SEC) on crypto exchanges, traditional finance players appear undeterred. Leo Mizuhara, CEO of digital asset management platform Hashnote, remarked in an email to CoinDesk that the recent surge caught many observers by surprise, given the prevailing "regulatory doom and gloom" surrounding the SEC lawsuits. Mizuhara further stated, "We're experiencing a confluence of events that is shaping up to be bullish for Bitcoin and digital assets more generally. You now have institutions like BlackRock and Fidelity getting into the space in a significant way, and these moves appear not to have been priced in." Mizuhara also highlighted the shift in the macro backdrop from monetary tightening to a more loosened approach, particularly in China and the United States.
As Bitcoin once again surpasses the $30,000 mark, market participants anticipate the continued positive momentum and eagerly await further developments within the crypto industry.
