Bitcoin Comments from BlackRock CEO Larry Fink sent institutional investors’ demand for bitcoin throbbing, pushing it to a 13-month high on Thursday.
The cryptocurrency ended the day flat at $30,302.03, according to Coin Metrics. It climbed to about $31,450 in the morning, reaching its highest level since June 2022. But the gains reversed as investors became more concerned about interest rate trends following the better-than-expected U.S. jobs report.
So far, the move has been a contrast between falling stock prices and rising yields. The 10-year U.S. Treasury yield has since climbed above 4%, its highest level in 16 years. Moreover, the minutes of the June meeting of the Federal Reserve (Fed), released Wednesday, indicated that most officials were willing to support further rate hikes in the future. Cryptocurrency liquidity has been at a low level in recent months, with both upside and downside moves continuing to be exaggerated.
Bitcoin (BTC) tumbled Thursday after better-than-expected US jobs data.
Noel Acheson, an economist and author of the newsletter Crypto is Macro Now, said the price still weighs. “We have seen a lot of selling resistance around $31,000 in recent weeks, which will eventually break through, but meanwhile the traditional markets seem to be in a more risk-off mood. We cannot yet assume that Bitcoin will ignore it.” ”
Sentiment among traders was high, but black rock CEO Larry Fink has announced perhaps the biggest bitcoin endorsement of all time from a major institutional investor. Speaking to FOX Business News on Wednesday, Fink called Bitcoin a “global asset” and said it “can represent an asset that people can play with as an alternative currency because it’s not based on a specific currency.”
Bitcoin has been steadily rising since June 15, when BlackRock, the world’s largest asset manager, first applied to launch a spot Bitcoin ETF. According to CryptoQuant, the number of coins held by institutions through trusts, ETFs, and funds has surged since then, reaching the highest level in more than a year, with Bitcoin open interest returning to pre-FTX levels.
“Market participants are responding positively to the entry of traditional financial institutions into Bitcoin. Yes,” said Michael Sonnenshain, CEO of Grayscale. bitcoin trust Waiting for green light to convert to ETF.
“But more importantly, recent news of Bitcoin newcomers has highlighted the sustainability of this asset class more broadly, with many investors calling it a once-in-a-generation investment. We see it as an opportunity,” added Sonnenschein.
