Bitcoin surged above $30,000 on Friday for the first time since July, marking a weekly gain of over 10%. This rise occurred amidst a period of volatile trading across various cryptocurrencies. The leading cryptocurrency, Bitcoin, reached a high of $30,022, its highest value since July 23. At the time of reporting, it was up by 4% for the day.
Joseph Edwards, Head of Research at London-based crypto firm Enigma Securities, commented that there was no immediate news catalyst for this surge, highlighting Bitcoin’s reputation for volatility and the opacity of its markets. Additionally, the broader financial markets have experienced increased nerviness lately. Investor sentiment was rattled by the middle-eastern conflict, a rise in benchmark US 10-year yields approaching 5%, and concerns about the prospect of interest rates remaining higher for an extended period of time.
This week, Bitcoin markets have been particularly skittish as investors eagerly await news on the fate of applications for a spot Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). Major financial firms, including BlackRock, have submitted these applications. Approval of such applications would potentially usher in a new wave of capital into the cryptocurrency asset class.
“Crypto assets are increasingly bucking the sell-off seen across stocks and bonds, as investors focus on the coming catalysts, like a potential SEC approval of a spot ETF,” said Ben Laidler, a strategist at eToro.
Bitcoin experienced a sudden surge on Monday, only to give up most of its gains later in the day after asset manager BlackRock denied a report from a cryptocurrency media outlet stating that its high-profile ETF application had been approved.
Reporting on the Bitcoin surge is provided by Tom Wilson and Elizabeth Howcroft, with Amanda Cooper in charge of editing.
