On Thursday, Bitcoin reached a 13-month high of nearly $31,450, its highest level since June 2022. However, it retreated back to $30,147.48, a 1% decline, as investor concerns of the direction of interest rates increased after the release of better-than-expected U.S. jobs data, pushing the yield on the 10-year U.S. Treasury note to a 16-year high of above 4%. The minutes of the Federal Reserve's June meeting, released Wednesday, also showed that most officials would support more rate increases ahead. Given the long-term liquidity constraints of the cryptocurrency market, the reaction to market news can be volatile. "There is still a weight on the price," said Noelle Acheson, economist and author of the "Crypto is Macro Now" newsletter. "We have often over the past few weeks seen selling resistance at around $31,000. That will eventually be broken, but meanwhile traditional markets seem to be entering a more risk-off mood – we can't yet assume that bitcoin will just shrug that off." This movement was seen despite BlackRock CEO Larry Fink's recent comments that predicted institutional Bitcoin demand.
Traders reacted positively after BlackRock CEO Larry Fink declared bitcoin an "international asset" on Fox Business News. His endorsement appears to have knocked bitcoin prices up as institutional investments in the currency surged to its highest level since a year ago. According to CryptoQuant, the amount of bitcoin held by trusts, ETFs and funds is back to what it was before FTX. Michael Sonnenshein of Grayscale remarked that the entrance of legacy financial institutions into bitcoin has given the asset further legitimacy. He also noted that these developments signify the long-term potential of bitcoin and many investors see it as an investment opportunity of a lifetime.
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