Bitcoin hit a nearly one-and-a-half-year high on Sunday, rising nearly 6% to $34,872. The increase was driven by speculation about Blackrock’s (NYSE:BLK) impending investment in bitcoin for its upcoming spot bitcoin exchange-traded fund (ETF). The rise in bitcoin was preceded by a 10% rally in the cryptocurrency and a 4.5% rise in Ethereum (ETH).
The crypto market is showing signs of a robust recovery throughout 2023. After facing significant challenges such as the Federal Reserve’s aggressive monetary tightening campaign, the Terra Luna crash, and the FTX bankruptcy, bitcoin managed to rebound to $31,000 in early July. It later stabilized around $25,000.
Investor optimism was rekindled after the SEC decided not to appeal the loss of Grayscale Investments. This decision has led to increased speculation that Blackrock will purchase bitcoin this month as seed capital for its spot bitcoin ETF.
The expected approval of a bitcoin-backed ETF is expected to draw conservative investors into the crypto market through traditional stock markets. This could potentially stimulate new investments and increase demand.
Several companies are poised to benefit from this positive trend in the crypto market. NVIDIA Corporation (NASDAQ: NVDA), a leading player in the semiconductor industry, is forecasting a revenue growth rate of 221.6%. Block Inc (NYSE: SQ), an online digital and mobile payment platform, is expected to grow 69%. Coinbase (NASDAQ: COIN) Global Inc. (NASDAQ: COIN), a provider of financial infrastructure and technology for the global cryptocurrency economy, projects earnings growth of 85.2%.
