Crypto Outlook: Gains to Unfold, But Short Term Pain Remains

The world's largest cryptocurrency hit its highest level in over a year thanks to BlackRock's plans for a bitcoin fund, though short-term risks exist.

BlackRock's application to the US Securities and Exchange Commission to form a bitcoin exchange-traded fund (ETF) was a major factor in the cryptocurrency's 15% weekly gain, pushing its price above US$30,000 for the first time since April and making it the strongest week for bitcoin since March.

Institutional investors sparked this upswing.

If the world's largest asset manager's proposed Bitcoin ETF gets the green light, it might entice investors who are wary of the high risk of purchasing bitcoin on their own, and lure many more sceptical long-term investors, according to a Blockhead survey of 25 analysts at investment management and research firms.