Bitcoin Price Surges by Over 7%; Institutional Interest Remains Strong

Bitcoin and ether are showing positive gains as the whole crypto market is trading in the green. Bitcoin, the largest digital asset, has risen by 7.69% to reach $28,836, while ether has increased by 4.7% to $1,805.

According to Strahinja Savic, the head of data and analytics at Toronto-based crypto platform FRNT Financial, Bitcoin’s rise above $28,000 is accompanied by its share in the overall crypto market cap exceeding 50% for the first time in two years. Savic also notes that, unlike many other digital assets, Bitcoin has not faced the same regulatory complexities seen in the United States.

Savic believes that the filing of a Bitcoin ETF by BlackRock underscores the continued institutional interest in Bitcoin, despite the sell-offs and bankruptcies witnessed earlier this year and in late 2022. 

Joe DiPasquale, the CEO of crypto fund manager BitBull Capital, also sees the Bitcoin ETF filings and the launch of the institutionally backed crypto exchange EDX as positive factors for the crypto market. He suggests that Bitcoin may continue to lead the market in the near term, with $30,000 acting as a significant resistance level.

By the looks of it, BTC is poised to breach $29,000 anytime soon. BTC’s surge was also accompanied by other prominent altcoins.

In contrast, renowned gold enthusiast and Bitcoin critic Peter Schiff expresses doubts about the long-term sustainability of the recent Bitcoin rally that pushed the cryptocurrency’s market capitalization to $28,000. Schiff questions the lasting demand for the EDX exchange and implies that increased trading opportunities may not necessarily translate into long-term interest in Bitcoin.

He views the exchange as a platform for gambling on Bitcoin, suggesting that the cryptocurrency is treated more as a high-risk asset than a safe long-term investment or stable store of value. Schiff maintains his belief that Bitcoin lacks inherent value compared to gold and is subject to speculative forces.