Could Bitcoin's $30k Be The Beginning Of A New Bull Run?

Although Bitcoin (BTC) failed to rally above $31,000 last week, the world’s first cryptocurrency has managed to hold steady at around $30K over the last few days, gaining over 21% over an 11-day period. Now investors and analysts are testing the waters to find out if the $30K support level can serve as a springboard for a new bull run that could propel the whole crypto market.

Bitcoin’s peak coincided with the lowest gold prices in three months, as the precious metal and prized commodity traded below $1,910 per ounce, coming down from over $2,000 in May. Bitcoin is often compared to gold as a store of value and hedge against inflation, but it looks like the top digital asset may be beating out the glittering metal among today’s investors.

Why did Bitcoin’s price go up?

Recent gains for the original cryptocurrency may be down to surging popularity in Bitcoin ETFs and futures instruments that are making inroads into traditional financial institutions. For example, HSBC Bank recently introduced its first cryptocurrency services (only available in Hong Kong), including three listed crypto ETFs. Large institutional investors such as MicroStrategy have also continued to accumulate Bitcoin, boosting confidence in the cryptocurrency market as a whole.

Bitcoin ETFs are also becoming more popular among American investors as signs emerge that the United States could soon become more crypto-friendly in terms of regulation. Recent enforcement actions from the Securities and Exchange Commission (SEC) made under the assumption that cryptocurrencies qualified as unregistered securities have floundered and highlighted the lack of clarity surrounding digital asset regulation in the US.

The actions of the SEC drew criticism from influential figures in the US Federal Reserve and the House of Representatives. Fed governor Michelle Bowman came out saying that policymakers had left financial institutions in a “supervisory void” when it came to digital assets, which had ended up punishing businesses only after they had made significant investments in new technologies. On the 2nd of June, lawmakers in the House of Representatives published a draft bill that aimed to curb the SEC’s overreach and protect the rights of financial firms to offer digital currencies. Representative Warren Davidson even called for the removal of Gary Gensler as SEC chair.

The SEC’s case against Ripple (XRP) is looking weaker after the release of the “Hinman documents” which confirmed that former director William Hinman’s position on Ethereum (ETH) and, by extension, cryptocurrencies more generally, were not securities. As the US regulatory environment begins to look sunnier for crypto assets, Bitcoin stands to benefit as usual.

Bitcoin Cash hits one-year high

The market has been kind to more than one member of the Bitcoin family. Bitcoin Cash (BCH) started the week strong by hitting $226.44, its highest price since May last year. BCH is a fork of the original Bitcoin network that was formed in 2017 with the aim of serving as a more practical payment system than BTC, which had become more of an investment vehicle. Despite its pitch of better serving the original intention behind the first cryptocurrency, Bitcoin Cash has never performed as well as BTC, but is enjoying a current boost of interest from institutional investors, retail traders, and social media commentators.

Trade BTC with the best conditions on StormGain

With the current favorable outlook for Bitcoin, it’s a good time to consider investing or trading in the exciting cryptocurrency market. Whether you’re looking to trade in the original cryptocurrency or acquire the most promising altcoins, StormGain offers the best perks for making the most out of your investment.

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