The price of Bitcoin surged above $30,000 for the first time since April, driven by a wave of initiatives that have reignited optimism in the crypto market, led by big Wall Street firms.
The largest cryptocurrency gained 6.1% and was trading at $29,789 at 11:26am ET on Wednesday, boosting Bitcoin's gain for the year to nearly 80%. Smaller coins like Ethereum, Cardano and Solana also rose.
Bitcoin traders got a shot of enthusiasm from the launch of EDX Markets, a crypto exchange backed by firms like Citadel Securities, Fidelity Digital Assets and Charles Schwab. BlackRock and WisdomTree soon followed with applications to launch Bitcoin-based exchange traded funds (ETFs) on U.S. markets.
The applications by BlackRock, the world's largest asset manager, and WisdomTree mark a potential turning point after the Securities and Exchange Commission (SEC) has repeatedly rejected ETF applications for Bitcoin futures contracts.
"BlackRock's application completely changed the game and reignited the race in a powerful way," said Spencer Hallaran at crypto investment firm GSR.
The latest rally has dispelled some of the gloom from an SEC regulatory crackdown on the crypto sector that has included lawsuits against crypto exchange operators Binance Holdings and Coinbase Global. The regulator has also classified a number of crypto tokens as unregistered securities.
Other factors like expectations for higher U.S. interest rates and possible Chinese economic stimulus are also influencing crypto markets and creating bullish conditions for Bitcoin's advance.
However, Bitcoin remains well below its all-time high near $69,000 from late 2021 amid the $1.5 trillion collapse of the crypto sector that contributed to meltdowns like the FTX exchange implosion late last year.
