Bitcoin Hits Highest Level Since July, Boosting Crypto Market and Stocks

New York, NY – Bitcoin surged to its highest price since July, reaching nearly $68,400 on Wednesday, as a rally in the cryptocurrency market gathered pace. The world’s largest cryptocurrency by market value climbed more than 9% in the past week, pushing other digital assets and crypto-related stocks higher.

The rally was not limited to bitcoin. Ether, the second-largest cryptocurrency, increased by 7%, while solana saw a gain of nearly 10% over the past seven days. Dogecoin, a popular meme-based cryptocurrency, surged 15%.

Crypto Stocks Soar

The price surge in bitcoin reverberated across the stock market, particularly in crypto-linked companies. Shares of Coinbase, the largest U.S. cryptocurrency exchange, jumped 7% on Wednesday, continuing a three-day rally that has seen the stock rise by 19%. Coinbase shares are now at their highest since August.

Bitcoin miners also benefited from the upward momentum. Marathon Digital and Riot Platforms, two leading bitcoin mining companies, saw their stock prices rise on Wednesday as well, as higher bitcoin prices improved profitability for mining operations.

ETFs Fuel Investor Interest

One key driver behind bitcoin’s 53% year-to-date gain has been the influx of new bitcoin-focused exchange-traded funds (ETFs). These financial products, which launched in January, have brought fresh investors into the crypto market by allowing them to gain exposure to bitcoin without directly purchasing the cryptocurrency.

In just the past three days, investors have poured $1.2 billion into bitcoin ETFs, bringing total ETF holdings to over $63 billion. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for over 30% of these new purchases.

Samara Cohen, chief investment officer of ETF and index investments at BlackRock, told CNBC that 80% of the investors in IBIT are retail buyers. Notably, 75% of those buyers had never owned a BlackRock ETF before, signaling that bitcoin is attracting a new demographic of investors.

“We went into this journey expecting that we would need to educate ETF investors on crypto and bitcoin specifically,” said Cohen. “As it turns out, we’ve done a lot of educating for crypto investors on the benefits of the ETF wrapper.”

Ether ETFs Gain Traction

Following the successful launch of bitcoin ETFs, ether ETFs entered the market in July, offering investors an opportunity to gain exposure to Ethereum, the blockchain network that powers the world’s second-largest cryptocurrency, ether.

Ether ETFs have attracted strong investor interest, providing an additional boost to the cryptocurrency market. Ethereum’s blockchain supports a wide range of decentralized applications (dApps), smart contracts, and non-fungible tokens (NFTs), making it a cornerstone of the crypto ecosystem.

Crypto’s Growing Maturity

The current rally in cryptocurrencies, led by bitcoin, reflects a broader shift in investor sentiment. The introduction of ETFs has played a crucial role in bringing digital assets into the portfolios of both institutional and retail investors, many of whom were previously hesitant due to concerns over security, market volatility, and regulatory uncertainty.

“ETFs have provided a gateway for investors who want exposure to crypto but don’t want to deal with the complexities of buying and storing the assets themselves,” said cryptocurrency analyst Jenna Lamberts of Arcane Research. “With more established financial institutions entering the crypto space, we’re seeing a stabilization that wasn’t there a few years ago.”

Outlook: Cautious Optimism

While the recent surge in bitcoin and other cryptocurrencies has generated excitement, market analysts warn that volatility remains a hallmark of the sector. Cryptocurrencies are known for sharp price swings, and regulatory developments in the U.S. and other markets could influence the rally’s longevity.

Still, the introduction of ETFs and the growing involvement of established financial institutions like BlackRock signal a level of maturity in the market. As more investors—particularly institutions—enter the space, some experts believe that the crypto sector could continue to see growth and stabilization.

For now, bitcoin’s resurgence is boosting confidence across the sector, giving both digital assets and crypto-linked stocks a welcome boost as the year draws to a close.