Bitcoin price reaches a one-year high.

The interest of many financial giants in cryptocurrencies has pushed the price of Bitcoin above $31,400 per coin.

On the night of June 23rd, the price of Bitcoin rose above $31,400 per coin – its highest level since May 2022. The price then declined and is currently around $30,700.

Bitcoin is currently the world's largest cryptocurrency by market capitalization. Earlier this week, the price of Bitcoin rose above $30,000 for the first time since April – a time when global investors scrambled for safe havens following the collapses of two US banks, Silicon Valley Bank and Signature Bank.

Bitcoin price movements over the past year.

This surge may be due to a number of major financial institutions showing interest in cryptocurrencies. According to the U.S. Securities and Exchange Commission (SEC), BlackRock – a global asset management giant – filed an application last week to establish a Bitcoin ETF. The EDX Markets cryptocurrency exchange – backed by financial giants Charles Schwab, Fidelity Digital Assets, and Citadel – also began operations this week.

On Twitter, where cryptocurrency discussions are rampant, some users suggest that FOMO—the fear of missing out—is partly responsible for the recent price surge. Some investors jumped into the market because they were seeing others reaping the benefits of the ongoing price increase and wanted to join in.

This year, the price of Bitcoin has increased by 87%. Investors expect the banking crisis in the US to force the Federal Reserve (Fed) to stop raising interest rates. They have always reasoned that this cryptocurrency would benefit from a low-interest rate environment and serve as a safe haven during periods of volatility in the traditional financial sector.

However, US authorities have recently tightened control over the cryptocurrency sector. Earlier this month, the SEC sued Coinbase – the largest cryptocurrency exchange in the US – and Binance – the largest cryptocurrency exchange in the world. Both companies are accused of violating numerous securities and trading regulations.

The price of Bitcoin is currently far below its peak of over $60,000 in 2021. Last year, this cryptocurrency was heavily impacted by interest rate hikes from the US Federal Reserve (Fed). The cryptocurrency market also witnessed the collapse of a number of prominent names, from the stablecoin TerraUSD, the venture capital fund Three Arrows Capital, to Sam Bankman-Fried's FTX exchange.

Moreover, cryptocurrencies are facing stricter regulatory scrutiny. The SEC has consistently maintained a closer watch on this market following numerous cases of fraud and failure by once-glorified companies.

Low trading volume also poses a significant risk. In May, the total volume of spot and derivative trading on centralized exchanges fell by more than 15% to $2.4 trillion, according to CCData. Spot trading volume alone decreased by nearly 22%, marking its lowest monthly level since March 2019.

Ha Thu - Tieu Gu (according to CNN)

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