Wall Street Embraces Crypto as Market Records Strong Weekly Gain
Cryptocurrency prices in New York are concluding the week on a high note, thanks to the participation of traditional finance players, even as the U.S. government intensifies its crackdown on leading digital asset pioneers.
Amidst these developments, the value of all crypto tokens reached approximately $1.25 trillion, marking an impressive 12% weekly increase and a remarkable 51% surge for the year.
Institutional Investment and EDX Exchange Drive Crypto Market Sentiment
Two significant factors have contributed to the market’s positive momentum, namely the growing interest of institutional investors and the launch of the EDX cryptocurrency exchange.
Firstly, the previous week saw the announcement by BlackRock, the world’s largest asset manager, seeking approval for a spot-market bitcoin exchange-traded fund (ETF), which spurred a wave of optimism among market participants.
Secondly, the recent opening of the EDX exchange, backed by prominent traditional-finance heavyweights including Charles Schwab, Citadel Securities, Fidelity, and Sequoia Capital, has further solidified investor sentiment.
The improved market outlook follows the SEC’s crackdown on Binance and Coinbase, the two largest cryptocurrency exchanges, in early June. However, amidst regulatory challenges, the market regained strength, driven by favorable developments.
Bitcoin Cash Surges on EDX Listing and Institutional Confidence
Notably, bitcoin cash has emerged as a standout performer, with a 31% surge on Friday and a remarkable 66% gain for the week. Its inclusion in the EDX listing has been a catalyst for this rise. It further indicates institutional confidence and a view of bitcoin cash as a commodity rather than a security.
On Wall Street, stocks of crypto mining companies also experienced notable gains, with Marathon Digital rising 7.4% for the day and 27% for the week, along with Hive Blockchain and Hut 8 Mining gaining 7% (29%) and 5% (27%) respectively.
Despite recent regulatory challenges, Coinbase recorded a daily gain of 6.9% . This is an 11% increase for the week, surpassing its pre-SEC suit level on June 6 by 4.7%.
The crypto market’s recent surge, fueled by the entry of traditional finance players, and the launch of the EDX exchange, underscores the resilience and growing acceptance of digital assets, despite ongoing regulatory pressures.
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