Bitcoin (BTC) is without a doubt the most valuable cryptocurrency in the market right now. That’s why almost every industry centred around blockchain-based finance is eager to watch its trends. However, the asset hasn’t been making headlines as of late because of the lack of activities. That’s until the asset casually reached $31,000 according to Coin Metrics and Coinbase. 

BTC has only remained within the $25,000 to $30,000 range since March. It’s been stable ever since but reaching a new ceiling of $31,412.72 makes it the first time it hit that point since June 8, 2022. This entirely independent rise in value is seen by Ryan Rasmussen, analyst at Bitwise Asset Management, as a sign of the crypto market maturing. 

This sudden rise in trading price means that casual and institutional trading in the network has remained liquid. It’s a good sign for traders looking to offload some savings in Q3 of 2023 or crypto crash game winners who plan on withdrawing their winnings. What it means for 2024, however, is still up for speculation because it’s still too early to say for sure. 

Possible factors that helped its rise

While BTC is the most valuable cryptocurrency in the market, seeing it reach such a high price this year is still impressive. It’s not at all surprising, however, because there are factors that led to it reaching $31,000. Here are a few of them and why they’re important for BTC:

BlackRock investment in Bitcoin ETF

One of the biggest money management companies, BlackRock, has proposed an exchange-traded fund (ETF) for Bitcoin. This Bitcoin ETF allows investors to invest in Bitcoin-centric businesses without having to own the currency. Thus, extending the opportunity to benefit from its growth to non-crypto traders. 

Coinbase and Binance favourable agreement with SEC

Many exchanges are under fire from the Securities and Exchange Commission (SEC) of the United States (US). Two of their top targets include Coinbase and Binance by allegedly operating as an unregistered securities exchange. The case was eventually settled in June 2023 where the SEC allowed the exchanges to avoid freezing of assets and keeping US customers. 

Common uses in trade and ecommerce

If there is any industry to be thanked for Bitcoin’s continuous growth as a valuable cryptocurrency, then it should be crypto trading and ecommerce. These are where the digital asset began and it’s what kept liquidity flowing for all markets. Among its top contributors include loan apps, online shopping, and even entertainment like the crypto crash game. 

Benefits of Bitcoin’s growth for the crypto industry

BTC is seen as the most influential crypto in the market. Every exchange supports it and has means to convert it into another digital asset. Thus, it’s primarily used to fund a variety of blockchain projects. That’s why people are eager to see it grow. It’s unlikely to reach another all-time-high soon but its steady growth means healthy business for every investor.