Bitcoin Rallies 8% to $29,000 as Major Financial Institutions Line Up with Crypto Offerings
The leading cryptocurrency, Bitcoin, with the highest market capitalization, gradually approached the $29,000 mark on June 21. This increase can be attributed primarily to the growing attention it has been receiving from major players in the traditional finance sector. According to data from CoinMarketCap, Bitcoin almost achieved a growth rate of 10% on Wednesday. In the last 24 hours, there has been an 8.3% surge in the token’s value, with its price fluctuating around $29,055 on various cryptocurrency trading platforms.
On Binance US, the price of BTC experienced a significant surge, reaching approximately $138,000 during the early hours of Wednesday, before stabilizing at current market rates in the $28,000 range. This sudden and notable increase in value has sparked curiosity. The root cause of the price surge on Binance’s American platform remains unclear at present. However, it is worth noting that similar occurrences have happened before.
It is commonly believed that the surge in Bitcoin’s value can be attributed to the growing interest of traditional finance institutions like BlackRock. The $8 trillion asset management firm has reportedly submitted an application for a Bitcoin exchange-traded fund (ETF). The US Securities and Exchange Commission has previously denied such applications due to concerns over potential market manipulation.
BlackRock has a strong track record in submitting ETFs, with 575 successful filings and only one instance of failure. The company also holds a significant 6% stake in MicroStrategy, owned by Michael Saylor. MicroStrategy is the largest corporate holder of BTC, with approximately 140,000 Bitcoins valued at over $3 billion.
The speculation and positive sentiment among supporters that institutional investors are making significant bets on BTC and the wider cryptocurrency market seem to have been triggered by BlackRock’s investment in MSTR. This move by BlackRock has served as a catalyst for other traditional finance entities, including WisdomTree and Invesco, to pursue the filing of a Bitcoin ETF.
These developments align with the SEC’s enforcement actions against Binance and Coinbase, the two largest centralized cryptocurrency exchanges. The Securities and Exchange Commission found that these platforms had violated securities statutes by operating unregistered securities exchanges and selling illegal securities tokens. The lawsuits included several cryptocurrencies such as SOL, ADA, and MATIC.
As a result, certain tokens were removed from trading platforms like eToro and Robinhood to mitigate potential regulatory repercussions.