• Bitcoin (BTC) market enjoyed a rally that saw its value rise to a new high for 2023 on Thursday.
• The pump was likely due to institutional investors, such as BlackRock and Fidelity Investment, reapplying for their Bitcoin ETFs and the BlackRock CEO’s statement saying that „Bitcoin is digitizing gold“.
• Bitcoin’s daily traded volume was up approximately 36 percent to about $16.9 billion, with its market dominance rallying beyond 51 percent.
Bitcoin Reaches New High
The Bitcoin (BTC) market enjoyed a relatively mild rally that saw its value rise to a new high for 2023 on Thursday. During the early New York trading session on Thursday, Bitcoin price traded above $31k and made some advancement towards $31.4k before retracing $30.7k.
Reason Behind the Pump
It is safe to say that Bitcoin is largely controlled by crypto whales who are mostly long-term holders. The recent Bitcoin ETF frenzy was rejuvenated after BlackRock reapplied its application through Nasdaq including Coinbase via a surveillance sharing agreement (SSA). Notably, Fidelity Investment has since reapplied for its Bitcoin ETF with the SEC in a bid to expose its institutional clients to the crypto market. On Wednesday, another investment firm named Valkyrie Investment also reapplied for a Bitcoin ETF. Additionally, the Bitcoin market also got a boost of confidence after BlackRock CEO Larry Fink said in a televised interview that „Bitcoin is digitizing gold“.
Daily Traded Volume
According to the latest market data provided by Binance-backed Coinmarketcap, Bitcoin’s daily traded volume was up approximately 36 percent to about $16.9 billion. Today’s pump saw its market dominance rally beyond 51 percent.
Institutional Investors Involvement
Institutional investors have been increasingly involved in cryptocurrency markets recently – which could be one of the main reasons behind this BTC pump on Thursday . Blackrock and Fidelity Investment are leading these institutional investors by applying for their own bitcoin exchange-traded funds (ETFs). This provides more exposure of crypto assets into traditional financial markets and can potentially bring more attention from retail investors as well as larger capital inflows into cryptocurrencies such as bitcoin over time .
Conclusion
Bitcoin’s recent price surge is likely due to increased interest from institutional investors as well as increasing public awareness from statements like those of Blackrock CEO Larry Fink who stated that „bitcoin is digitizing gold.“ This trend could continue if other large investment firms decide to follow suit by investing in cryptocurrencies or even creating their own bitcoin ETFs . As seen from this day’s BTC pump, it certainly looks like there may be an increase in demand and consequently higher prices ahead for bitcoin over time .