• Bitcoin (BTC) experienced a mild rally on Thursday, with its value rising to a new high for 2023.
• The market saw an increased daily traded volume of approximately 36 percent and market dominance beyond 51 percent.
• Factors driving the pump include crypto whales, the recent Bitcoin ETF frenzy, BlackRock and Fidelity Investment reapplying for their respective ETFs, and BlackRock CEO Larry Fink’s comments regarding the digitization of products.
Bitcoin Price Rises to a New High
Bitcoin (BTC) 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. 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 Bitcoin pump saw its market dominance rally beyond 51 percent.
Factors Driving 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 dubbed Valkyrie Investment reapplied for a Bitcoin ETF as well as mentioned specific SSA agreements with Coinbase in their 19b-4 filing document.
Additionally, the Bitcoin market also got a huge boost of confidence after BlackRock CEO Larry Fink said in a televised interview that Bitcoin is digitizing gold: “Specifically on bitcoin, as I’ve said in the past, we’re a believer in the digitization of products…Bitcoin is an international asset…It can represent an asset that people can play as an alternative.“
Increased Institutional Interest
The reapplication of different firms due to increased institutional interest provides further evidence that mainstream financial institutions are increasingly embracing cryptocurrency investments and technology – which could be driving prices up across all markets involved with cryptocurrencies like BTC or Ethereum (ETH). Additionally, this increase in institutional interest could also be pushing more retail investors into buying various cryptos amid fear of missing out on these potentially lucrative investments and further driving prices higher over time.
Cryptocurrency Market Volatility
Despite this renewed optimism from mainstream investors regarding cryptocurrencies such as BTC or ETH – it should be noted that this market still remains extremely volatile and unpredictable due to numerous external factors such as geopolitical tension or regulatory scrutiny from governments around world – so it is still important for potential investors or traders alike not exposure themselves too much risk when investing in this nascent asset class.,
To summarize this article; The value of Bitcoin rose significantly during Thursday’s trading session thanks mainly due increasing institutional investor appetite for cryptocurrency investment coupled with confidence expressed from BlackRock CEO Larry Fink regarding his belief in digital assets such as BTC being able digitize gold like assets – however despite this optimism remain volatility within crypto markets given numerous external factors so caution should taken when investing/trading within these markets