Bitcoin surged past the $64,000 mark, as the global cryptocurrency market saw a nearly 3% increase in the last 24 hours. The total market cap now stands at over $1.26 trillion.
This rise comes after BlackRock, the world’s largest asset manager, released a white paper highlighting Bitcoin’s potential as a hedge against monetary and geopolitical risks.
Why is Bitcoin Gaining Momentum?
The white paper highlighted the permissionless and decentralised features of Bitcoin and was first made available to the public on September 18 by Eric Balchunas, senior ETF analyst at Bloomberg. In addition to being a cryptocurrency, it positioned Bitcoin as the first “truly open-access monetary system” in history.
This action by a major financial player like BlackRock is interpreted as a strong endorsement of Bitcoin’s ability to serve as an exceptional diversifier for investors, particularly during economic volatility.
The recent rate reduction by the Fed added to the market’s bullishness for cryptocurrencies. Intending to promote economic expansion, the rate reduction instilled fresh assurance in Bitcoin holders. Thus, the bulls have built a sizable lead again. Analysts closely monitor the market, but it is unclear if they can sustain this momentum.
BlackRock’s Influence on Bitcoin
The white paper released by BlackRock is essential in swaying institutional investors. Through its posture as a hedge against conventional financial risks, the asset management company has successfully increased awareness of Bitcoin’s advantages that go beyond its speculative value.
In the white paper, BlackRock emphasised how Bitcoin’s decentralised structure protects it from governmental regulation and provides a level of financial independence that is becoming more and more appealing in uncertain times.
The company’s support may encourage institutional adoption of Bitcoin even further, which would help explain the cryptocurrency’s recent surge in value.
Strong Outlook for Bitcoin in Q4
Analysts are hopeful that Bitcoin will perform well in 2024 as it has in the past during the final quarter of the year. Bitcoin is well-positioned for another successful run thanks to the macroeconomic environment’s improvement, which has been bolstered by positive regulatory developments and growing interest in decentralised finance.
Tom Lee of Fundstrat has continuously expressed optimism in Bitcoin. He believes that the impending halving event in 2025 and the increasing institutional interest are the main reasons why the cryptocurrency might reach $150,000 by the end of this year. Like Lee, other market analysts think that as more investors turn to digital currencies, Bitcoin may continue to beat more conventional assets like equities and bonds.
Bitcoin’s unique position as both a currency and a store of value continues to attract attention. As more institutional players like BlackRock enter the space, the world’s first cryptocurrency could be on the brink of reaching new heights.