In a significant boost for the cryptocurrency market, the price of bitcoin soared on Monday, reaching its highest level since early May. The surge came as major financial institutions continued to express support for bitcoin, signaling a growing acceptance of cryptocurrencies within traditional finance.
According to Coin Metrics, bitcoin experienced a notable gain of over 5%, reaching $28,002.18. Ether, the second-largest cryptocurrency by market capitalization, also witnessed a rise of 3.5%, trading at $1,782.99.
The prevailing sentiment in the crypto space has been positive since last week when BlackRock, the world’s largest asset manager, filed an application for the first-ever spot bitcoin Exchange-Traded Fund (ETF) in the United States. This development occurred shortly after the Securities and Exchange Commission (SEC) initiated legal action against two prominent crypto exchanges, Binance and Coinbase. Notably, BlackRock’s timing has raised speculation, especially as it has Coinbase as its crypto custody partner.
Adding to the momentum on Tuesday morning, a newly established cryptocurrency exchange, supported by financial giants Charles Schwab, Fidelity Digital Assets, and Citadel Securities, announced that it has been operational for several weeks, facilitating the trading of bitcoin and ether.
Fidelity, a renowned financial institution, has been actively engaged with the crypto market since 2014. In recent years, the company established the Fidelity Digital Assets division, launched a commission-free retail investing app called Fidelity Crypto, and provided 401(k) investors with access to cryptocurrencies, subject to employer availability.
While many financial incumbents have shown interest in blockchain technology and its potential to transform traditional financial systems, their stance on crypto investing has often been less explicit.
The visible commitment of prominent names such as BlackRock and Fidelity to the cryptocurrency market has instilled optimism among investors. The announcement from these respected financial institutions suggests that the perceived reputational risks associated with conducting crypto-related activities could begin to dissipate, potentially attracting more investors who have been hesitant to enter the market.
Although bitcoin has faced challenges in breaking out of a narrow trading range during this quarter, it has managed to remain above the significant support level of $25,000. Tuesday’s substantial price surge propelled the cryptocurrency’s monthly gains into positive territory, with a year-to-date increase of 69%.
As cryptocurrencies gain further acceptance and backing from established financial players, the market continues to evolve, potentially opening up new opportunities for investors and contributing to the mainstream adoption of digital assets.
Disclaimer: The information provided in this article is based on market analysis and does not constitute financial advice. Cryptocurrency investments are subject to market risks, and individuals should conduct their own research before making any investment decisions.