After not having reached that level since April 2022, Bitcoin (BTC) has now finally begun to approach $40,000.
Prominent money manager Jeroen Blokland pointed out that this rally seems quite different from past ones, suggesting that Bitcoin’s place in the larger financial system may be changing.
This opinion is expressed at a moment when the cryptocurrency market is seeing a surge in interest, which is partially due to the expectation of possible spot Bitcoin exchange-traded funds (ETFs).
Bitcoin’s new role as an “accepted” asset class
Bitcoin’s latest price increase represents a dramatic turnaround after the cryptocurrency had a period of fall owing to several crypto scandals and unfavourable market sentiment.
In contrast to previous rallies, Blokland notes, the present upsurge is supported by investors’ increasing recognition of Bitcoin as a respectable asset class.
This perspective shift is critical, particularly as Bitcoin keeps integrating into established banking systems.
The ongoing interest indicates that the market is maturing and starting to see Bitcoin as more than simply a trading tool.
A sign of market confidence
Not only is Bitcoin’s rise to over $40,000—it peaked at $39,725 on the Bitstamp exchange—but it also represents the increasing trust that the cryptocurrency sector is gaining.
Given the enthusiasm around the possible approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), this rise is very notable.
By exposing investors to Bitcoin without the hassles of direct ownership, these exchange-traded funds (ETFs) may draw in a fresh group of institutional and individual investors.
The price of Bitcoin has already increased in anticipation of new ETFs, suggesting that the market is ready for more sophisticated investment vehicles.
