The cryptocurrency market saw a surge recently as Bitcoin prices moved up significantly on Tuesday. This uptick follows circulating reports that Fidelity intends to file for a spot Bitcoin exchange-traded fund (ETF) soon. Fidelity will be the fifth firm to do this following BlackRock’s filing back in June.
Stock Market Performance
Simultaneously, stocks have also looked promising, breaking a two-day lowering trend. Investors have been following recent economic reports suggesting the economy’s strength despite recent turbulence. S&P, Dow, and Nasdaq all closed with gains at market close.
Data from TradingView indicates a sharp rise in Bitcoin price, with the cryptocurrency spiking from $30,405 earlier in the morning to a daily high of $31,082, following the Fidelity news. The bulls are now aiming for a tight gather at the $31,200 resistance level. Bitcoin futures prices traded firm in the early trading hours, further underlining the ongoing positive momentum for Bitcoin.
Insight Into Bitcoin’s Performance
Additional insight came from Matteo Greco, Research Analyst at Fineqia International who referred to the flurry of ETF filings and pointed out the significant increase in Bitcoin’s price over the previous week. He mentioned the highest year-to-date price of Bitcoin and highlighted the impact news concerning the macroeconomic level and Bitcoin adoption by institutions had on the market.
While it remains unclear if the bear market is over, the rising Bitcoin dominance along with the low trading volume confirms the trend towards a less speculative environment in recent months as investors have rebalanced their portfolios in favour of Bitcoin thus reducing volatility and risk.
Bitcoin Mining Difficulty
Bitcoin’s mining difficulty which signifies the difficulty level to mine new blocks of Bitcoin, has hit its peak. Despite this, the promising trend could potentially reduce the selling pressure of Bitcoin and lead to a continuation of the current uptrend.
Altcoins also rallied in the green, with Bitcoin’s recent gains instilling confidence for traders to engage in the broader crypto market. The overall cryptocurrency market cap presently stands at $1.19 trillion with Bitcoin’s dominance rate at 50.1%.