Bitcoin Price Hits $31,000, Creates New 1-Year High with Institutional Support

In a significant development for the crypto market, Bitcoin, the largest crypto asset by market capitalization, created a new one-year high just above $31,000 late last week on Friday’s morning trading session. The surge comes as major traditional finance institutions, including BlackRock, Invesco, and WisdomTree, filed applications for spot Bitcoin Exchange-Traded Funds (ETFs). This move by institutional investors has bolstered market confidence and raised expectations of a price rally driven by institutional participation.

BTC/USD | Source: TradingView

According to data from CoinMarketCap, Bitcoin’s price soared to a peak of $31,389.54 before experiencing a slight retracement over the past weekend. Over the past seven days, BTC has recorded a gain of more than 15.48%, marking a significant upward trend. The positive momentum has also spilled over to other major cryptos, such as Ethereum (ETH), Bitcoin Cash (BCH), and Pepe (PEPE), which experienced notable upswings of 10%, 83%, and 69%, respectively, during the same period.

Read More: Bitcoin Price Prediction

According to data from TradingView, Bitcoin’s market cap dominance has surged a staggering 23% in the year-to-date timeframe, to nearly hefty 51.5% of market cap dominance as of writing this article.

Bitcoin Market Cap Dominance | Source: TradingView

The recent filings for Bitcoin ETFs by BlackRock, Invesco, and WisdomTree signify the ongoing commitment of large institutional investors to the digital asset space. The move comes as a reassurance to investors who had expressed concerns following the US Securities and Exchange Commission’s (SEC) lawsuits against crypto exchanges. The involvement of these renowned financial institutions is expected to instigate further institutional interest in the crypto market and potentially drive prices higher.

Notably, cryptos have demonstrated a growing detachment from traditional equity markets. As investors remain wary of potential interest rate hikes and global recession risks, equities faced their first losing week in over a month. While central banks, including the US Federal Reserve, have adopted a slightly more dovish stance, the Bank of England took a different approach by increasing its interest rates by 50 basis points to tackle inflation. The Federal Reserve has reiterated its intention to resume raising rates, which could potentially impact the performance of digital assets.

Additional Read: Crypto Price Update

As Bitcoin reaches new highs and institutional interest in cryptos continues to grow, market participants are closely monitoring the evolving regulatory landscape and central bank policies. The potential impact of interest rate decisions on digital assets remains a crucial consideration. While the recent surge in Bitcoin’s price is certainly encouraging for crypto enthusiasts, investors are advised to approach the market with caution and conduct thorough research before making any investment decisions.

Crypto assets have proven their resilience and ability to decouple from traditional markets, attracting a diverse range of investors. With the backing of major institutions and a surge in prices, the crypto market remains an intriguing space to watch as it continues to evolve and carve out its place in the financial landscape.