• Bitcoin (BTC) had a mild rally that saw its value reach a new high of $31k on Thursday.
• Market data showed the daily traded volume was up approximately 36 percent to around $16.9 billion with market dominance rallying beyond 51 percent.
• The pump was attributed to crypto whales, ETF frenzy from BlackRock and Fidelity Investment, and Larry Fink’s comments on Bitcoin digitizing gold.
What is Bitcoin?
Bitcoin (BTC) is a digital asset that functions as a decentralized form of money. It operates independently of any central bank or government-issued currency and relies upon cryptography for security and verification purposes. It can be used as an investment, a medium of exchange between buyers and sellers, or as an online payment system for goods and services purchased online.
Why is Bitcoin Price Up Today?
The Bitcoin (BTC) market enjoyed a relatively mild rally that saw its value rise to a new high for 2023 on Thursday. During the early New York trading session on Thursday, Bitcoin price traded above $31k and made some advancement towards $31.4k before retracing $30.7k according to the latest market data provided by Binance-backed Coinmarketcap. Additionally, the daily traded volume was up approximately 36 percent to about $16.9 billion with market dominance rallying beyond 51 percent today’s pump in BTC’s price .
Reasons Behind Increase in Value
The recent increase in value appears to be attributed to several factors including crypto whales who are mostly long-term holders, ETF frenzy from BlackRock Fidelity Investment who have applied for their respective ETFs with the SEC in order to expose their institutional clients into the crypto market, as well as Larry Flink’s comments during an interview where he said that Bitcoin is digitizing gold providing additional confidence into it’s future prospects .
Advantages & Disadvantages Of Investing In Crypto
Cryptocurrency offers various advantages over traditional investments such as anonymity for transactions which makes it difficult for governments or other entities to track capital flows, it also offers faster transaction speeds than banks or credit cards due to its decentralized nature as well allowing users access 24/7/365 without interruption from holidays or banking hours . However there are also risks associated with investing in cryptocurrency such as extreme volatility caused by speculation or lack of regulation which could lead investors losing funds quickly if prices plummet suddenly .
It remains unclear how long this current bullish trend will last however investors should keep an eye out for any further news regarding potential ETF approvals along with commentary from other influential figures within the industry which could help propel prices even higher .