Why Are the Crypto Market and Bitcoin up Today?

Over the last 24-hour period, the total market capitalization of the cryptocurrency space moved up by around 1.7% to $1.18 trillion, with Bitcoin’s price rising over 2.1% to test the $30,000 mark after a slight downturn over the last few days.

The rise has left various traders wondering why the cryptocurrency market is up today, and the potential answer may involve a large number of factors that include renewed interest from institutional investors that have been moving into the space after a series of spot Bitcoin exchange-traded fund (ETF) filings by financial behemoths.

As CryptoGlobe reported, financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency and have filed to list spot Bitcoin ETFs in the United States. These firms include the world’s largest asset manager BlackRock, as well as Fidelity, Invesco, and others.

Institutional investors, according to CCData’s latest Digital Asset Management Review, have been investing in cryptocurrency investment products, with a significant surge in assets under management occurring for products focusing on Bitcoin ($BTC) and three major altcoins – Stellar ($XLM), $XRP, and Solana ($SOL).

Per the report, the positive performance of these altcoins helped the total assets under management of these products experience a miner increase of 1.14% to $33.7 billion, marking the second consecutive monthly growth. AUM for these products has grown 71.5% so far this year.

Recently, popular cryptocurrency analyst Byzantine General revealed that the “entire short build-up of the past couple of days was “wiped,” meaning that the amount of short positions against BTC was significantly reduced as the price rise led to various liquidations.

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Another factor influencing the cryptocurrency market today was MicroStrategy’s recent quarterly earnings statement, which saw the firm report a $24.1 million impairment charge on its Bitcoin holdings, while revealing they’re now worth an estimated $4.4 billion after the firm bought more BTC in July.

MicroStrategy has also stated it will conduct stock sales for $750 million, which it admits could be used to purchase more Bitcoin for its portfolio or to repurchase or repay outstanding debt.

Popular on-chain analytics firm Santiment has noted on social media that Bitcoin briefly breached the $30,000 mark “with assistance from the many traders who capitulated during the past week of price declines.”

Another factor potentially influencing cryptocurrency prices was the launch of Binance’s platform in Japan, showing that the leading trading platform may be able to survive the recent lawsuit it started facing from the U.S. Securities and Exchange Commission (SEC), even if by being compliant elsewhere in the world.

Notably, equities are down after rating agency Fitch downgraded the US government’s credit rating over fiscal and political instability.

Featured image via Unsplash.

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• Source: https://www.cryptoglobe.com/latest/2023/08/why-are-the-crypto-market-and-bitcoin-up-today/