Wall Street Institutions Expand Into Crypto as Bitcoin Surpasses $29,000 for First Time Since May

·

Bitcoin Rebounds Past $29,000 Amid Institutional Momentum

Bitcoin has surged past $29,000, marking its highest level since late May and reigniting investor optimism across the digital asset market. This rally, driven by a confluence of institutional developments and favorable macroeconomic signals, highlights a growing shift in how traditional finance is embracing cryptocurrency.

As of New York afternoon on June 20, Bitcoin climbed to $28,016—a 5% gain over 24 hours—and continued its upward trajectory to surpass $29,000 shortly after. According to CoinGlass, this momentum triggered approximately $36.6 million in short liquidations within the same period, the largest wave of short squeezes since May 28. The resurgence reflects renewed confidence among traders and long-term investors alike.

Institutional Adoption Fuels Market Optimism

A major catalyst behind Bitcoin’s rebound is the accelerating involvement of Wall Street giants in the crypto space. Recent strategic moves by some of the world’s most influential financial institutions signal a deeper integration of digital assets into mainstream finance.

👉 Discover how leading financial players are reshaping the future of crypto investing.

Deutsche Bank has filed for a digital asset custody license in Germany, marking a significant step toward regulated crypto services in Europe. Meanwhile, Charles Schwab, Citadel Securities, and Fidelity Digital Assets have backed EDX Markets—an institutional-grade crypto exchange now live with trading pairs for Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

But perhaps the most impactful development came from BlackRock, the world’s largest asset manager with over $8.5 trillion in assets under management. The firm recently filed an application for a spot Bitcoin ETF, sending shockwaves through the market. While not the first such filing, BlackRock’s entry carries unmatched weight due to its scale and influence. The proposed ETF would use Coinbase as custodian, further legitimizing crypto infrastructure in the eyes of regulators and investors.

This move has already had ripple effects. Grayscale’s Bitcoin Trust (GBTC) saw trading volume spike by 400%, underscoring heightened demand for regulated exposure to Bitcoin. Although the U.S. Securities and Exchange Commission (SEC) has yet to approve any spot Bitcoin ETF—rejecting previous applications from firms like ARK Invest and 21Shares—the momentum appears to be shifting.

Brent Xu, CEO and co-founder of DeFi lending platform Umee, noted: “The price surge is clearly tied to major traditional institutions signaling serious intent to engage with digital assets. Their clients want access via familiar tools like ETFs. This push may help counterbalance the current regulatory uncertainty in the U.S. and advocate for clearer, fairer rules.”

Core Keywords:

Bitcoin Dominance Reaches Two-Year High

In parallel with institutional interest, Bitcoin’s dominance in the broader crypto market has climbed to 45.84%, its highest level since July 2021. This resurgence follows increased regulatory scrutiny on major exchanges like Binance and Coinbase, where the SEC labeled several altcoins as unregistered securities.

As uncertainty grows around altcoin compliance, capital appears to be rotating back into Bitcoin—the most recognized and resilient digital asset. Investors often view BTC as a “safe haven” within the volatile crypto ecosystem during periods of regulatory tension or macroeconomic stress.

Macroeconomic Tailwinds: DXY Dip and Rate Pause

Beyond institutional activity, macroeconomic conditions are also supporting Bitcoin’s recovery.

The U.S. Dollar Index (DXY) has cooled following the Federal Reserve’s decision to pause rate hikes last week. Historically, a weaker dollar tends to boost risk assets—including equities and cryptocurrencies—as investors seek higher returns in alternative markets.

👉 Learn how global macro trends are influencing crypto valuations today.

With expectations growing that U.S. economic growth may slow and inflation stabilize, many analysts believe the dollar could continue to soften. If this trend holds, it could further benefit Bitcoin by enhancing its appeal as a hedge against currency devaluation and inflation.

Additionally, improved sentiment in traditional markets often correlates with gains in digital assets. A stable or bullish stock market environment can spill over into crypto, especially when accompanied by low interest rates and ample liquidity.

The 2024 Halving: Scarcity on the Horizon

Another key factor shaping long-term Bitcoin sentiment is the upcoming block reward halving, expected in April or May 2024.

Occurring roughly every four years, the halving reduces the number of new Bitcoins generated per block by 50%. The next event will cut mining rewards from 6.25 BTC to 3.125 BTC—a built-in mechanism designed to control supply inflation and reinforce scarcity.

Historically, previous halvings have preceded major bull runs. Analysts at JPMorgan predicted that this cycle could propel Bitcoin toward $45,000, factoring in reduced sell pressure from miners and increasing institutional demand.

Michael Saylor, executive chairman of MicroStrategy—one of the largest corporate holders of Bitcoin—reiterated his bullish outlook in a recent Bloomberg interview. He forecasted that Bitcoin could rise tenfold from current levels—and then do so again—eventually consolidating into a future where only Bitcoin and a handful of proof-of-work coins survive.

“The entire industry is destined to rationalize,” Saylor said. “We’ll end up with just Bitcoin and maybe six to a dozen other POW tokens.”

His vision underscores a growing belief among crypto advocates: that Bitcoin is evolving from speculative asset to foundational digital reserve.

FAQ: Your Questions Answered

Q: Why did Bitcoin surge past $29,000?
A: The rally was driven by institutional momentum—including BlackRock’s ETF filing—and supportive macro conditions like a weakening dollar and anticipation of the 2024 halving.

Q: What is a spot Bitcoin ETF?
A: A spot ETF directly holds actual Bitcoin rather than futures contracts, offering investors more transparent and direct exposure to price movements.

Q: How does the Bitcoin halving affect price?
A: By reducing new supply issuance, halvings create scarcity. Historically, they’ve preceded strong upward price trends due to increased demand against constrained supply.

Q: Is Bitcoin safer than other cryptocurrencies?
A: Many investors see Bitcoin as lower risk due to its established network security, high liquidity, and growing acceptance by institutions compared to smaller altcoins.

Q: Could the SEC approve a spot Bitcoin ETF soon?
A: While no approval has been granted yet, BlackRock’s application adds significant pressure on regulators. Approval could come in 2024, especially if market conditions remain stable.

Q: What role do Wall Street firms play in crypto adoption?
A: Major financial institutions bring credibility, capital, and access to millions of retail and institutional clients—accelerating mainstream adoption through regulated products like ETFs and custody solutions.

👉 Explore trusted platforms enabling secure access to Bitcoin and emerging digital assets.

Conclusion: A New Era of Digital Finance

The recent climb above $29,000 is more than just a price milestone—it reflects a structural shift in financial markets. With Wall Street deepening its involvement through ETFs, custody services, and exchange investments, Bitcoin is increasingly being treated as a legitimate asset class.

While regulatory clarity remains a challenge in the U.S., institutional demand continues to build. Combined with macro tailwinds and the approaching halving event, these forces suggest that Bitcoin’s upward momentum may be just beginning.

For investors watching from the sidelines, now may be the time to understand how digital assets are being integrated into the global financial system—and how platforms are making it easier than ever to participate securely and efficiently.