Bitcoin Rose Above $31,000 Thanks to Growing Demand

The biggest cryptocurrency in the world by market value surpassed $31,000 alongside gains in global equity markets and fresh evidence of growing demand for cryptocurrency from traditional market participants.

The bounce comes a day after Bitcoin printed its first UTC close below $30,000 for more than half a year. Still, the dip below $30,000 was superficial as well as temporary, possibly because of the return to risky assets in traditional markets. The U.S. equity market rose more than 1% on Tuesday as the focus shifted from concern about the highly contiguous Delta coronavirus variant to growth.

Bitcoin rose above $30,000 on early Wednesday. Buying pressure strengthened, pushing the price of the cryptocurrency above $31,000. Bank of New York Mellon joined State Street and several other banks in backing the cryptocurrency trading platform Pure Digital. That news helped to boost the price of Bitcoin.

Many investment banks announced plans to launch cryptocurrency services in 2021, citing a surge in interest from their clients. Swiss financial giant UBS Group is exploring ways to offer cryptocurrencies to wealthy clients. The Swiss bank is exploring a number of alternatives for offering the asset class.

The Crypto market may also have benefited from the crypto derivatives exchange FTX’s record-breaking $900 million fundraising round at an $18 billion valuation. The result shows that people believe in crypto, even though Bitcoin lost more than half of its value since mid-April.

Some in the crypto community are associating the price recovery with the upcoming bitcoin-centered conference. Tesla CEO Elon Musk, one of the most famous crypto proponents will participate in the conference. He will share his opinion about crypto in a live discussion with Square CEO Jack Dorsey. ARK Investment founder Cathie Wood will also take part in a discussion.

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