Bitcoin has soared above $60,000 for the first time in a while, marking a weekly gain of over 10% amidst turbulent trading in the cryptocurrency market.
The largest cryptocurrency by circulation, Bitcoin, reached as high as $60,022.
Joseph Edwards, head of research at London-based crypto firm Enigma Securities, noted that there was no immediate news catalyst for Bitcoin’s surge. Bitcoin’s reputation for volatility and the opaqueness of its markets contribute to such rapid movements.
Market sentiment in broader financial markets has been uneasy recently, influenced by factors such as geopolitical tensions in the Middle East, rising U.S. 10-year yields approaching 5%, and concerns about prolonged high-interest rates.
Bitcoin markets, in particular, have exhibited nervousness this week as investors await updates on applications with the U.S. Securities and Exchange Commission (SEC) for a spot bitcoin exchange-traded fund (ETF) from major financial institutions like BlackRock.
The approval of such applications could potentially attract a new wave of capital into the cryptocurrency space, according to crypto investors.
Ben Laidler, a strategist at eToro, commented, “Crypto assets are increasingly defying the sell-off observed in stocks and bonds, as investors focus on upcoming catalysts, such as the potential SEC approval of a spot ETF.”
Bitcoin experienced a sudden surge on Monday before relinquishing most of its gains, following a report in crypto media suggesting that BlackRock’s highly anticipated ETF application had been approved, which the asset manager later denied.
