Bitcoin experienced a momentary return to its recent highs above $31,000 on Monday, only to dip slightly below that threshold shortly afterward.
The cryptocurrency, boasting the largest market capitalization, has shown a 2% increase in the past 24 hours as investors reignite their enthusiasm following positive developments in the crypto space.
This includes the filing of spot bitcoin ETFs by financial services giants like BlackRock in mid-June. Bitcoin’s price rally comes amidst a backdrop of fading inflation concerns and favorable predictions from analysts.
Bitcoin recently traded at $30,690, showing a nearly 2% gain over the past day. The cryptocurrency temporarily surpassed the $31,000 mark during a 90-minute surge before retreating.
While bitcoin dipped below the $30,000 support level due to inflation concerns triggered by a robust ADP private sector jobs report, those concerns have seemingly dissipated.
Bitcoin has recorded a 20% increase in the past month, with much of the gains attributed to the spot BTC filings. A report by Standard Chartered Bank suggests that bitcoin could reach $50,000 by the end of this year and surpass $120,000 by 2024.
Mark Connors, head of research for digital asset management firm 3iQ, suggests that the recent rise in digital assets can be attributed to positive events in June that are now being processed by investors.
The spot BTC ETF filings have played a significant role in driving bitcoin’s price action. Additionally, former SEC Chair Jay Clayton’s remarks favoring certain protections for bitcoin futures ETFs have contributed to growing optimism.
Investors are also warming up to the possibility of the Congressional Digital Assets Market Structure and Investor Protection Act, which could provide clarity on whether a digital asset is decentralized.
Ether, the second-largest cryptocurrency, was trading at approximately $1,890, reflecting a 1.8% increase from the previous day.
Other major cryptocurrencies, such as MATIC (Polygon), ADA (Cardano), and BNB (Binance), have either turned positive or shown significant gains. MATIC and ADA recorded rises of over 6% and 2%, respectively, while BNB surged by more than 4%.