- The last two weeks of the strong SEC industry crackdown with Binance and Coinbase appear to have been forgotten by the cryptocurrency market.
- As a result of BlackRock’s BTC ETF filing, the price of bitcoin jumps close to $31,000.
- Chinese economic forecasts of Bitcoin’s decline to nearly nothing represent a failed market forecast.
Like a phoenix, the cryptocurrency market has emerged from the ashes of the SEC’s market crackdown. Market sources indicate that the cryptocurrency market cap increased by 5% as sentiment improved as a result of two institutional bitcoin plays in the previous week. On June 21, the price of bitcoin increased and hit a 15-day high of $29,086.
Crypto shakes of the negative weekend effect
Since the weekend, there has been growth in the cryptocurrency market. The market cap of all cryptocurrencies as of today is $1.18 trillion, up 6.5% over the previous day, according to CoinMarketCap. Additionally, $57.6B worth of cryptocurrency was traded in the most recent day. The current BTC dominance according to on-chain data is 47.7%. Furthermore, Ethereum has an 18.6% market share.
The recent bad news of the SEC taking action against Binance and Coinbase has been followed by a new BTC rise. BTC supporters, though, are probably optimistic that BTC can end its 10-week losing skid. The live price of Bitcoin, according to Binance, is $ 30800 per (BTC/USD), with a market size of $ 564.52B USD at the moment. The 24-hour trading volume is 28.84 billion dollars.
According to market analysts that a growing institutional interest in Bitcoin from companies like BlackRock and Fidelity Investments, both of which seem to be in the process of filing for a spot Bitcoin ETF, appears to be the fundamental driver of the surge. The current value of the Bitcoin Fear and Greed Index is 59.
Additionally, the Chinese government has made a concerted effort to persuade the people that Bitcoin will lose all of its value, but thus far, its predictions have been wildly off. Since the Chinese government announced that the original cryptocurrency would be devalued in 2022, its value has risen by almost 36%. Here are a few more explanations for the rise in the price of bitcoin today.
BlackRock ETF filing leads to a Bitcoin rally
The price of bitcoin started to increase on June 15 when BlackRock submitted an application for a spot BTC ETF in the US. Although not the first business to submit an application to the SEC for a Bitcoin ETF, BlackRock is the biggest.
The SEC has yet to approve a spot Bitcoin ETF despite numerous applications, including those from Cathie Wood’s ARK and 21Shares, which has three times filed for approval. Another company that has been turned down for a Bitcoin ETF is Grayscale. After being rejected, the company appealed the decision to the SEC, arguing that Bitcoin futures are legitimate.
BlackRock is the largest asset manager in the world with more than $8.5 trillion in assets under management. The company will also use Coinbase to keep the BTC in the trust, according to the SEC filing. The application has also been advantageous for the Grayscale ETF. The discount is less than 37% and is approaching the 2023 highs.
China fails to persuade its citizens that Bitcoin is a risky investment.
China has made an effort to profit from a major market crash that occurred during the bear market. Investors in cryptocurrencies were warned by the People’s Republic of China that Bitcoin values were “on their way to zero.” Although it is uncertain whether Bitcoin would ever reach zero, despite the Chinese government’s warning, its value has not decreased. Contrarily, following the warning, Bitcoin has increased significantly.
When the Chinese government issued the warning in June 2022, according to CoinMarketCap statistics, Bitcoin was trading at about $20,000. BTC is currently trading at $30,800, up nearly 38% over the past year.
One of the first nations to impose regulations on cryptocurrency was China. Chinese authorities forbade cryptocurrency exchanges from operating there in 2017. Despite the total prohibition, Bitcoin continued to climb, rising 1,900% to $20,000 by the end of 2017.
A useful index for the cryptocurrency industry is US dedollarization.
Another encouraging factor for Bitcoin prices is the weakening of the US dollar index (DXY). Historically, when the DXY index falls, attitude toward risk assets such as Bitcoin rises.
Some market investors think that because the Federal Reserve stopped raising interest rates last week, the US economy will grow and the dollar will keep depreciating. If this occurs, Bitcoin might climb in step with the stock market. The price of bitcoin rises as macroeconomic conditions get better.
How is the rest of the market performing?
Outside of the majors, bitcoin cash (BCH) grew by 15%, stacks (STX) increased by 21%, and tokens of “Chinese Ethereum” conflux (CFX) increased by up to 30%, possibly as a result of traders’ bets on the potential for these tokens to generate enormous gains in the future.
Over the last 24 hours, the overall crypto market capitalization increased by 5%, adding approximately $50 billion in value. According to CoinGlass, the increase resulted in $125 million in short liquidations across crypto-tracked futures.
According to data, traders who shorted bitcoin lost $54 million, followed by ether, sui (SUI), and XRP. Shorts are bets against the price of any asset rising.
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