It is now exactly halfway through the year and, so far, 2023 has been a good one for bitcoin and the cryptocurrency market.

There was much pessimism as investors rang in the new year six months ago. Bitcoin, weighed down by regulatory uncertainty and the collapse of crypto giant FTX, had fallen below $16,000 per coin, far lower than its record of $69,000 notched in 2021.

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But six months in, bitcoin has largely grown in value, and optimism is slowly replacing trepidation in the minds of investors.

Bitcoin is now punching in at about $31,000 and is around levels last experienced in June 2022. That represents nearly 87% growth from the start of this year, truly tremendous returns for just a mere six months.

And bitcoin isn’t the only digital asset that has overperformed in the first half of this year.

Ethereum, the second-largest coin by market cap, is up more than 60% since the start of January, ripple is up about 40%, and cardano grew by a more modest 16%.

Behind this year’s bullish crypto market are several factors.

For one, the macroeconomic environment has been less mercurial than last year, and recession fears, particularly in the past couple of months, have abated somewhat, although many economists still predict an economic downturn.

In downturns, investors typically flee risky investments in favor of safer and more stable stores of value. Bitcoin and other cryptocurrencies are still a new asset class, and those who have invested in the coins began selling off their holdings last year for fear they will crash, resulting in a chain reaction effect. Now, though, as things look more stable, investors might feel more confident in holding on to their investments or perhaps even buying up more crypto.

The traditional stock market has also managed to stay above water and perform well, despite the Fed hiking rates and all of the talk of a recession. The Dow Jones Industrial Average is up about 4% since the start of the year, the S&P 500 has risen more than 16%, and the Nasdaq composite has expanded an astonishing 33%.

Crypto expert Brandon Zemp told the Washington Examiner that while there has been some regulatory tightening in the United States surrounding bitcoin, other markets around the world have been opening up, which is helping fuel the growth.

“I think most of the prior price action bitcoin has had in the past has come largely from the United States,” Zemp said, “and for the first time, I think you’re seeing a lot of that price action start to happen outside of the United States.”

More recent Wall Street-driven developments have also been a boon for bitcoin and other cryptocurrencies.

This month, BlackRock filed paperwork with the Securities and Exchange Commission for an exchange-traded bitcoin fund.

The iShares Bitcoin Trust, if approved, would be the first exchange-traded fund to have bitcoin as an underlying asset as opposed to futures contracts. Previous applications to the SEC from other money managers have been rejected, though just the application for an exchange-traded fund shows growing institutional acceptance from such a major Wall Street player.

Konstantin Shulga, CEO and co-founder of Finery Markets, said that the BlackRock filing is a testament to the public’s “unwavering interest” in bitcoin even despite last year’s massive losses and potential regulatory changes.

“The world of cryptocurrency has been facing a lot of uncertainty in the U.S. market due to regulatory issues. However, despite these challenges, institutions have still been showing interest in it as an asset class,” Shulga said. “It seems that the adoption of cryptocurrency is slowly but surely taking place.”

Still, the central question at play, and one that will undoubtedly have a big effect on cryptocurrency markets, is whether BlackRock’s filing will actually end up receiving approval from the SEC, although this push is notable because BlackRock is the world’s largest money manager and one of the most influential firms on the planet.

“Despite numerous attempts, not a single application for a spot [exchange-traded fund] has received the green light from the SEC so far,” Shulga said. “The biggest question now is whether BlackRock’s filing will meet a different fate than previous proposals from companies like Fidelity or Cboe Global Markets, which were met with rejection.”

There is also excitement around a new cryptocurrency exchange, EDX Markets, which launched this month and is being financially backed by major institutional firms. Founding investors include heavy hitters such as Charles Schwab, Citadel Securities, Fidelity, and Sequoia Capital, among others. The exchange so far allows trades of bitcoin, ethereum, litecoin, and bitcoin cash.

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Zemp said he expects more positive growth from bitcoin this year as the market heads into 2024.

“I think what will end up happening for bitcoin is we’ll see this continue to rise — bitcoin could go to $35,000, $40,000, $45,000 potentially — it will get closer and closer to its previous all-time high,” he predicted.