Bitcoin bulls are seeking to take advantage of light market liquidity ahead of the July 4 holiday to push the price of the digital currency to another high for the year.
The largest cryptocurrency rose as much as 1.9% to $31,159 on Monday, just below the one-year high of $31,410 reached on June 23. Bitcoin has surged more than 80% this year, with prices rallying in the past month amid renewed optimism that an exchange-traded fund that invests directly in the digital currency will eventually be approved in the US.
“Historically liquidity is definitely lower around holidays and combined with a relatively large increase in leverage recently, prices will be more susceptible to sharp movements,” said Kyle Doane, a trader at Arca. “The market is still leaning bullish and overall sentiment continues to improve.”
BlackRock refiled paperwork with the US Securities and Exchange Commission on Monday through Nasdaq to add new details to its proposal for an ETF.
A spot Bitcoin ETF has long been seen as the holy grail for the crypto industry, as a way to reach a broader swath of consumers, but the SEC has repeatedly rejected prior filings. Bitcoin has reached almost $69,000 in late 2021.
Shares of crypto-related companies have joined in the latest rally. Coinbase, the largest US exchange, jumped 12% on Monday, while Bitcoin proxy MicroStrategy gained 10%. Crypto miners Marathon Digital and Riot Platforms, increased 11% and 13%, respectively. US equity markets closed early ahead of Tuesday’s holiday.
