Bitcoin Retreats Below $31K Following a Late Monday Surge

Bitcoin experienced a short-lived return to its recent high above $31,000 on Monday before dipping slightly below that threshold.

The cryptocurrency saw a nearly 2% increase over the past 48 hours, as investors regained enthusiasm following spot bitcoin ETF filings by financial giants like BlackRock.

Despite recent volatility driven by inflation concerns, positive events in the crypto industry have helped buoy Bitcoin’s price.

Spot ETF Filings and Regulatory News

The recent surge in Bitcoin’s price can be attributed to a number of factors, including the spot Bitcoin ETF filings that took place in June.

These filings were seen as a positive sign for the crypto industry, as they could pave the way for greater institutional investment in Bitcoin.

Additionally, former SEC Chair Jay Clayton’s favorable comments about the applications also provided a boost. Clayton mentioned that if the filings incorporated specific protections present in Bitcoin futures ETFs, it would be challenging to resist approving a spot Bitcoin ETF.

Other Positive Catalysts

In addition to the spot ETF filings, there have been other positive developments in the crypto industry that have helped to boost Bitcoin’s price.

For example, the Congressional Digital Assets Market Structure and Investor Protection Act was introduced in June.

This bill could determine the decentralization status of digital assets, and its potential approval is being seen as a positive development by many investors.

Market Overview

Ether, the second-largest cryptocurrency, witnessed a 1.8% increase and was trading at around $1,890. Other major cryptocurrencies followed a similar trend, with MATIC and ADA, the tokens of smart contracts platforms Polygon and Cardano, experiencing gains of more than 6% and 2% respectively. BNB, the native cryptocurrency of the Binance exchange, also rose by over 4%.