Bitcoin’s break above $30,000 has reignited interest in the crypto market, buoying shares in miners, blockchain developers, and exchanges.
The biggest cryptocurrency peaked at US$30,800 on Wednesday when major new institutionally backed crypto exchange EDX, backed by multinational TradFi heavyweights Fidelity, Charles Schwab (NYSE:SCHW) (Charles Schwab (NYSE:SCHW)) Corporation and Citadel Securities, opened for business.
That followed a report that BlackRock the world’s largest asset manager, has applied to the US Securities and Exchange Commission (SEC) to launch a new Bitcoin exchange-traded fund (ETF).
“Such a large name moving into the space has inspired fresh confidence in the asset class, driving a wave of demand,” commented Tickmill Group’s James Harte.
“The surge higher in Bitcoin this week has seen the broader crypto market recovering also. Bitcoin futures are now up around 25% off last week’s lows.”
While Bitcoin retreated from Wednesday’s highs to around $30,400 on Friday, the coin is still about 15% up on the week and has gained more than 80% year to date.
“Applications from traditional finance companies to launch ETFs backed by the coin, along with a resulting short squeeze, have both been driving interest with the underlying passing back through the $30,000 mark,” said CMC Markets’ Michael Hewson.
Companies including Galaxy Digital (TSX-V:GLXY), Marathon Digital and Coinbase Global Inc (NASDAQ:COIN) have joined in the ride, gaining about 16%, 27% and 2.2% respectively this week.
Some smaller players have fared even better.
Shares of Iris Energy Limited (NASDAQ:IREN) have surged 46% over the past five days, while RocketFuel Blockchain Inc (OTCQB:RKFL) is up about 40%.
LQwD FinTech Corp. (TSX-V:LQWD, OTCQB:LQWDF) has added 8% week-over-week and Evergreen Sustainable Enterprises (OTCQB:EGSE) jumped 12% early Friday.
Rocketful Blockchain CEO Peter Jensen told Proactive how the latest IMF push for global central bank digital currencies (CBDCs) is also a validating note for the future of blockchain and cryptocurrency technologies.
Contact the author at stephen.gunnion@proactiveinvestors.com