Bitcoin Surges 10% Towards $112,000 Amid Dollar Fears, BlackRock ETF

Bitcoin has experienced a significant rebound in recent weeks, driven by fears of a serious U.S. dollar collapse and increased interest from billionaires. The price of bitcoin has surged towards its all-time high of $112,000 per bitcoin, with traders anticipating that a potential flip by the Federal Reserve could further boost the crypto market.

As the bitcoin price continues to rise, the crypto market is bracing for a major development from BlackRock. The asset management giant, which manages around $10 trillion worth of assets, has been a prominent voice in the bitcoin price discussion. BlackRock's chief executive, Larry Fink, has become one of the most bullish voices on Wall Street regarding bitcoin.

In-kind redemptions for bitcoin and crypto exchange-traded funds (ETFs) are on the horizon, according to U.S. Securities and Exchange Commission (SEC) commissioner Hester Peirce. In-kind redemptions allow investors to exchange ETF shares directly for the underlying asset, making it cheaper and quicker for traders to buy and sell ETF shares. This change could make bitcoin and crypto ETFs more attractive to institutional investors.

BlackRock, which has dominated the spot bitcoin ETF market with its $75 billion IBIT fund, has asked the SEC to permit in-kind creations and redemptions for bitcoin ETFs. Other providers, such as Fidelity, have also followed suit. The SEC is currently processing these requests, which could significantly impact the crypto market.

BlackRock's massive $75 billion bitcoin ETF has played a significant role in the bitcoin price surge this year. The fund holds around 3% of the 21 million bitcoin that will ever exist, worth almost $75 billion at the current bitcoin price. This has raised concerns about BlackRock's outsized control over the network.

The combined bitcoin price and crypto market is at a critical juncture, with the market value hitting $3.4 trillion. According to one analyst, the $3.4 trillion to $3.55 trillion range is a turning point that has activated sellers and prevented the market from consolidating higher. Bitcoin has been testing the $108,000 mark, but it is expected to sell off when it touches this level. The market has seen a steady intraday uptrend, accompanied by heavy buying from medium- and long-term investors, indicating professional market participation and a potential rise to $110,000 or even $112,000 in the near future.