Bitcoin price surpasses US$31,000, reaching its highest level in over a year, following news that several traditional financial giants are seeking permission to launch cryptocurrency index funds (ETFs) in the United States.
The interest from these established institutions signals growing optimism and increased market appeal for digital assets.
The value of the largest cryptocurrency by market capitalization rose by 3.4 percent on Thursday, reaching US$31,504, its highest point since June 8 of the previous year.
Bitcoin has experienced a 90% increase in value this year, with recent speculation focusing on the potential approval of a bitcoin ETF in the US.
Notable financial firms like BlackRock and Fidelity Investments have resubmitted proposals to the US Securities and Exchange Commission (SEC) for bitcoin ETFs, contributing to the positive sentiment in the market.
Despite declines in the global stock market, the upward trend in bitcoin’s price is also reflected in other major cryptocurrencies like ethereum (ETH).
While bitcoin’s value has nearly doubled this year, concerns about low liquidity and potential price volatility still impact cryptocurrency markets.
Investors are leveraging their positions to amplify their optimistic bets, leading to an increased susceptibility to sudden price movements.
However, overall market sentiment remains positive, and investors continue to be cautiously optimistic.
At the time of writing, bitcoin was trading at $30,629, and ethereum, the second-largest cryptocurrency, had experienced a 0.32 percent increase.
The approval of a bitcoin ETF has long been seen as a significant milestone for the cryptocurrency industry, expanding its accessibility to a broader investor base.
However, previous applications have been rejected by the SEC.
Cryptocurrency-related companies are also benefiting from the recent rally.
Coinbase, the largest US exchange, has seen a 9.5 percent increase in July, while MicroStrategy, associated with bitcoin, has gained 10.4 percent.
Cryptocurrency miners Marathon Digital and Riot Platforms have also experienced 12.3% and 15% gains, respectively.