Bitcoin and other major cryptocurrencies, such as Ethereum and XRP, have experienced a significant surge in value in recent months, setting the stage for what could be a monumental year for the crypto market in 2024.
The price of Bitcoin has soared past $40,000 per coin, reaching levels not seen since early 2022. This surge is attributed in part to a major announcement from BlackRock, which has had a significant impact on the wider crypto market.
BlackRock, one of the world’s largest asset managers with over $10 trillion under management, has made adjustments to its bitcoin spot exchange-traded fund (ETF) application, allowing Wall Street banks such as JPMorgan and Goldman Sachs access to the ETF. This move has the potential to significantly increase liquidity in the market.
In a late November filing, BlackRock updated its ETF filing to allow Wall Street banks to act as “authorized participants,” bypassing restrictions that previously prevented them from holding bitcoin and other cryptocurrencies on their balance sheets.
This development comes as BlackRock and other major players in the crypto space work to navigate the details of ETF approval with the U.S. Securities and Exchange Commission (SEC).
Furthermore, traders in the crypto market are closely monitoring potential market pullbacks following the recent surge. Despite a recent correction, experts believe that the market may continue to experience elevated volatility in the near future.
Overall, these recent developments point to a potentially pivotal year for cryptocurrencies, with significant changes in the regulatory landscape and the involvement of major institutional players reshaping the market.
This surge in cryptocurrency prices comes against the backdrop of a historic halving event in the Bitcoin network, which took place in 2020. The halving was a significant occurrence that reduced the reward for mining new blocks by half, having a profound impact on the supply and demand dynamics of the cryptocurrency.
As the crypto market continues to evolve, it’s essential for traders and investors to stay informed and ahead of the market trends. For more insights and updates on the latest in the crypto market, sign up for Forbes’ CryptoCodex, a free daily newsletter for the crypto-curious.
