3 Reasons BTC Soared to $29K: Can It Go Higher?

• Bitcoin’s price surged by 7% in the past 24 hours, despite regulatory uncertainty.
• BlackRock filed for a spot Bitcoin ETF with the US Securities and Exchange Commission.
• Other factors influencing the surge include increased institutional interest, halving, and a potential bull run.

Bitcoin Price Surge

Bitcoin’s price is up over 7% in the past 24 hours – a move that resulted in a spree of liquidations, the majority of which were, expectedly, short. Interestingly, this comes amid times of considerable uncertainty in the United States in terms of regulatory clarity. The SEC recently filed two lawsuits against the world’s leading cryptocurrency exchanges – Binance and Coinbase, alleging both of them violated securities laws.

BlackRock Filed for a Bitcoin ETF

BlackRock is the world’s largest asset manager, and it made a massive step forward toward legitimizing Bitcoin as an asset class that’s investment worthy. The company filed for a spot Bitcoin Exchange-Traded Fund (ETF) with the United States Securities and Exchange Commission. While this might sound like a tale of old, there’s one worthwhile difference between BlackRock and all the other companies who have filed for a spot Bitcoin ETF so far: its success rate with the SEC is 575 to 1. That’s right—BlackRock has only had one application denied almost 10 years ago! An approved ETF would legitimize Bitcoin as an asset class and open it up to more institutional investors without any underlying worries about compliance or regulation issues.

Increased Institutional Interest

Institutional investors are becoming increasingly interested in BTC as well; Grayscale Investments reported that their cryptocurrency assets under management rose by almost $4 billion last month alone! Additionally, large hedge funds such as Point72 Asset Management are also getting involved in crypto markets through derivatives such as CME futures contracts . This increased institutional interest can be seen to contribute to higher prices even further—especially when combined with BlackRock’s announcement of an ETF filing!

Halving Impact

In May 2020 we saw yet another halving event for BTC—the third since its introduction—which reduced miner rewards from 12.5 BTC per block mined to 6.25 BTC per block mined . This event further reduced supply while simultaneously increasing demand due to anticipation from miners hoping they could make up losses through price appreciation . Again , these effects could be seen pushing prices even higher!

Potential Bull Run?

Ultimately , all these factors are combining to create what seems like huge potential for another bull run . We have seen significant jumps in prices over recent weeks , followed by substantial drops at times too — indicating heavy volatility . If demand continues at its current pace though , then this surge could easily become sustained — potentially sending prices much higher than where they currently stand !