Bitcoin surpasses $30,000 barrier for the first time since July

LONDON: In a significant surge, Bitcoin crossed the $30,000 mark on Friday for the first time since July, marking a weekly gain of over 10 per cent. This rise occurred amidst a backdrop of volatile trading in the cryptocurrency market.

Bitcoin, the most widely circulated cryptocurrency, reached a peak of $30,022, its highest value since July 23. At the end of the day, it was up by 4 per cent.

According to Joseph Edwards, the head of research at London-based crypto firm Enigma Securities, there was no immediate news driving this increase in Bitcoin’s value. The cryptocurrency’s market is well-known for its volatility and the opaque nature of its transactions.

The broader financial markets have been experiencing a sense of nervousness lately.

Investor confidence has been shaken by ongoing conflicts in the Middle East, a rise in the benchmark US 10-year yields towards 5 per cent, and concerns about the possibility of interest rates remaining significantly higher for an extended period.

This week, Bitcoin markets have been particularly jittery. Investors have been eagerly awaiting news regarding applications submitted to the US Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF) by major financial institutions, including BlackRock.

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Crypto investors believe that the approval of such applications could bring a new wave of capital into the cryptocurrency market.

According to eToro strategist Ben Laidler, crypto assets are defying the sell-offs witnessed in stocks and bonds. Investors are focusing on upcoming catalysts, such as the potential approval of a spot ETF by the SEC. This development could potentially reshape the landscape of the cryptocurrency market.

Earlier in the week, Bitcoin experienced a sudden surge on Monday, only to retract most of its gains.

This occurred after asset manager BlackRock refuted a crypto media report claiming that its high-profile ETF application had been approved.

The market remains attentive, with anticipation building around regulatory decisions and their potential impact on the crypto market.