After a week or two of price drops, Bitcoin is flying high again. The biggest cryptocurrency by market volume has almost reached $29,000, currently sitting just below at $28,850. That’s a new 14-day high in a while, and the best part is that it comes in the middle of SEC’s ongoing legal action against Binance and Coinbase. Bullish traders are hopeful that Bitcoin will break through its 10-week losing streak, which might be a catalyst for that bull run everyone’s been playing up for so long.
According to data, the price hike resulted in the liquidation of over $36.6 million of shorts in the past day. That’s the shortest squeeze this month. Another reason for the price rise is that many large financial services have announced major crypto initiatives which have brightened up the mood regarding the crypto market while the SEC is fighting exchanges.
BlackRock Behind the Rally
One of the reasons for Bitcoin’s recent price rally is investment firm BlackRock. It filed for a Bitcoin ETF in the USA on June 15, after which Bitcoin started its ascension. It’s not the first firm to do so. However, it’s one of the largest applicants, and if approved, this move can have major implications on the crypto market.
The SEC has so far rejected all approaches for a Bitcoin ETF so far. Grayscale, for example, has appealed its rejection. BlackRock’s situation might be different. As the world’s largest asset manager (over $8.5 million in assets), it will be a big win if it manages to obtain the ETF. The firm will use Coinbase to custody the BTC in its trust. Its application didn’t just boost Bitcoin’s price. It also boosted Grayscale’s ETF, with the discount approaching 37%.
Another overly positive sign for the increasing Bitcoin price is the cooling US Dollar index. Over the years, whenever the DYX index goes down, the sentiment surrounding risk assets such as Bitcoin goes up. The FED’s interest rates were paused last week, and some experts believe this is a sign the US economy will finally start to grow. This would see the dollar rise too, but even in that way, Bitcoin could continue to grow along equity markets. It’s safe to say that it’s in a good spot now and for the near future.
Sideways Trading This Year?
While some experts are optimistic at the moment, others believe Bitcoin will trade sideways for the rest of the year. While there’s no sure way to say what happens next, we’re in the middle of a crypto renaissance every way you look at it. Bitcoin’s price is overall on the rise this year, and in the past few weeks, we’ve received positive news from many countries and financial institutions looking to get exposure to the digital agent ecosystem.
The Bitcoin and crypto momentum around the world is finally starting to change, and we’re happy it’s so. If that momentum continues and Bitcoin’s price stays undefeated, we could finally see the crypto earthquake we’ve been waiting for so long.