Earlier today the crypto market broke through the US$300 billion mark for the first time in six weeks after completing a remarkable turnaround.
Just under a month ago the value of the entire market was down as low as US$233 billion, but this afternoon it sits a massive 30% higher at US$302.5 billion according to Coin Market Cap.
Major alt coins including Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and EOS (EOS) have played a key role in this rebound, as have smaller alt coins such as Stellar (XLM) and Cardano (ADA).
The latter two coins have been particularly strong performers over the last ten days after being named as two of five potential additions to the massively popular CoinBase exchange.
But arguably the biggest contributor to the rebound in the market has been the performance of crypto giant Bitcoin (BTC).
It broke through the US$8,000 level today and has not looked back. At the time of writing the world's largest cryptocurrency is fetching US$8,315.70, up almost 6% since this time yesterday.
This latest gain means that the Bitcoin price has now rallied an impressive 34.6% higher in the space of just one month and gives it a market capitalisation of US$142.8 billion.
Why is the Bitcoin price on fire?
Perhaps the biggest catalyst for Bitcoin has been speculation that exchange traded fund (ETF) giant BlackRock has its eyes on the industry.
According to CNBC, the asset manager, which has an estimated US$6 trillion under management, has set up a working group to look into cryptocurrencies and blockchain.
While there has been no confirmation of any plans for BlackRock to launch a Bitcoin ETF, some traders appear optimistic that one is coming. Such a launch could bring significant funds to the market, increasing demand for coins and supporting prices.
In addition to this, there is further speculation that a separate ETF could be approved by the U.S. SEC as soon as next month.
Where next for Bitcoin?
With sentiment becoming increasingly positive, things certainly do look good for crypto traders at the moment. The next challenge for the market, in my opinion, will be for prices to hold at these levels for an extended time and fend off any profit taking selling. If it can do that, then Bitcoin could well be making a move towards the US$9,000 level next month. But that's easier said than done.
