• Bitcoin prices surged to a 13-month high, surpassing June 2022 levels, as BlackRock’s potential entry into the cryptocurrency market fueled hopes for a bitcoin ETF.
• The price of bitcoin briefly reached over $31,460 at 5 a.m. ET on Thursday, marking its highest level since June of the previous year. However, it later experienced a pullback as the broader market declined.
• BlackRock CEO Larry Fink’s positive remarks about bitcoin’s potential to revolutionize finance, particularly if tokenized assets and securities gain adoption, further boosted optimism.
• Investors were also encouraged by the prospect of a bitcoin exchange-traded fund, following BlackRock’s filing of an application to register its own ETF, which would hold the world’s largest cryptocurrency.
• Notably, CryptoQuant reported that open interest in bitcoin futures had reached levels not seen since the collapse of crypto exchange FTX in November.
• In addition, a recent report from Ark Invest indicated that nearly 70% of the circulating bitcoin supply had remained inactive for at least a year, suggesting growing investor confidence in the asset.

The recent surge in bitcoin’s price is influenced by factors such as the weakening U.S. dollar index and signs of decreasing inflation. Moreover, several companies, including WisdomTree, Invesco, VanEck, Fidelity, and Bitwise, have resubmitted applications for a bitcoin ETF, contributing to the upward momentum in bitcoin’s value.

Oanda analyst Edward Moya commented that bitcoin is currently hovering around the $31,000 level, with growing optimism surrounding the potential approval of BlackRock’s bitcoin ETF by the Securities and Exchange Commission. If such permission is granted, the rally in bitcoin’s price may likely continue.

Conclusion

The price of bitcoin surged to a 13-month high due to increased hopes for a bitcoin ETF, driven by BlackRock’s involvement and positive statements from CEO Larry Fink. Factors such as the weakening U.S. dollar and resubmitted ETF applications from various companies also contributed to the price surge.