According to Coinbase, Bitcoin’s price hit $24,748.43 at one point on Thursday, up 4.81% with 24-hour trading. Thursday’s rise continues the rally by the leading cryptocurrency, whose price has risen 7.69% in just one week. Bitcoin currently has a market cap of $470.5 billion and currently has a circulating supply of 19,118,581 BTC coins.
Across the board, cryptocurrencies prices have seen a surge this week following a softer-than-expected inflation report, with Ethereum, Bitcoin’s biggest rival, leading the pack with its value rising 18.63% in the past week. Currently, the price of Ethereum is trading at $1,910,655 per ETH.
Why is Bitcoin going up?
Bitcoin surged above $24,000 on Wednesday, reaching its highest level in more than a month. Over the past week, Bitcoin prices have continued to rise, rising in value from Friday’s low of $22,392 to Thursday’s high of $24,569. However, despite the rise in Bitcoin prices, it remains 64.02% below the all-time high of $68,789.63 in November 2021. In recent weeks, the cryptocurrency market has seen a rebound that could potentially end the infamous crypto winter.
This is a relief for many investors, as Bitcoin’s price fell by about 38% in June, which is one of the largest single-month declines in the cryptocurrency’s history. Bitcoin’s price has been stable for the past week, making up for its losses this month.
One of the reasons why the prices of Bitcoin and other cryptocurrencies are rising is that they are closely monitored with the stock market this year. For the past few weeks, markets have largely been in a downturn, but recently they have risen in the US, Europe and Asia, allowing crypto to follow that trajectory.
Another factor contributing to the crypto market recovery is the cooling inflation that has negatively impacted both commodities and the stock market. Analysts attribute that the slowdown in US inflation also boosted the crypto market, sending Bitcoin back to the $24,000 threshold on news that the consumer price index (CPI) remains stable. According to the US Bureau of Labor Statistics, the consumer price index remained seasonally adjusted in July, after rising 1.3 percent in June.
The US consumer price index rose 8.5 percent year-on-year in July, a slower year-on-year increase than in June, as inflation eased on the back of lower gas prices. The expectation that inflation will start to fall is contributing to investor confidence.
What Is Also Fueling Bitcoin’s Rise?
The crypto market also got another shot thanks to the news that Coinbase is partnering with BlackRock, the world’s largest asset manager to offer crypto investment services to major institutional investors and high net worth retail clients. Under the agreement, Coinbase Prime will provide crypto trading, custody, prime brokerage and reporting capabilities to Aladdin’s institutional client base, which is also Coinbase’s client. The deal will allow Bitcoin to gain further utility in other major investments, including pension funds, mutual funds, foundations and endowments.
Built primarily for institutions, Coinbase Prime integrates advanced trading, custody, primary funding, infrastructure staking and staking, data and reporting that support the entire transaction lifecycle. It also combines these capabilities with industry-leading security, insurance and compliance practices to provide Coinbase institutional clients with a full-service platform to access crypto markets at scale. Coinbase’s clients include hedge funds, asset allocators, financial institutions, corporate treasuries, and other institutions.
“This connectivity to Aladdin allows clients to manage their bitcoin exposures directly into their existing portfolio management and trading workflows for a complete portfolio view of risk across asset classes,” said Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock.
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