- The price of Bitcoin spiked over 10% to $30,600 on June 21, the highest point in two months, based on CoinGecko data, extending gains from earlier in the week.
- Investors seem to be growing bullish about the prospects of BlackRock and other huge institutions getting involved in digital assets.
- Earlier in the week, BlackRock submitted an application for a spot Bitcoin ETF, which might help track Bitcoin’s underlying market price.
Bitcoin soared to its highest point in over a month on Wednesday, fueling excitement among traders who were captivated by the potential of a spot bitcoin exchange-traded fund (ETF). This surge in enthusiasm was triggered by a string of applications submitted by prominent firms like BlackRock, further amplifying the market’s anticipation.
At approximately 11 a.m. ET, the value of bitcoin experienced a notable surge, climbing by 10% to reach $29,405.22, as reported by CoinGecko data. This marked the cryptocurrency’s highest point since May 6 and extended the momentum of its earlier gains observed throughout the day.
Investors now seem to be growing bullish about the prospects of BlackRock and other major institutional brands getting deeply involved in digital assets.
All this bullish sentiment has come up despite the bad news that has been surrounding the crypto sector lately, with the market still trying to recover from the FTX’s collapse and the ensuing regulatory fallout.
The head of international markets at CoinDCX, India’s biggest crypto exchange, Vijay Ayyar, told reporters:
“The slate of spot bitcoin ETF application announcements by larger institutions has definitely brought back bullishness into the crypto markets. We also hit major support at $25K for BTC, and we’ve seen this move be driven more by pure spot buying rather than a short liquidation type move which is quite healthy.”
“Market structure-wise on BTC we broke a major downtrend that started in April this year and lasted around 2 months, hence most traders would be looking for us to test at least $32k. Breaking that level opens up $36k and then $45-48K.”
ETF Announcements
At the beginning of the week, BlackRock made a significant move by filing an application for a spot Bitcoin ETF. Such an ETF would closely follow and reflect the actual market price of Bitcoin. Supporters of cryptocurrencies argue that this development would provide investors with a means to gain exposure to Bitcoin’s potential without the necessity of directly owning the underlying asset.
Coinbase is currently listed as the Bitcoin custodian for the proposed BlackRock ETF. Notably, BlackRock has an existing strategic partnership with the crypto exchange. The major US exchange has been undergoing a period of severe hardship lately, under massive regulatory pressure from the United States Securities and Exchange Commission.
Following BlackRock’s announcement, numerous asset management firms, including WisdomTree, have swiftly followed suit by submitting their own applications for a Bitcoin ETF. This surge in applications indicates a growing interest among financial institutions to offer an exchange-traded fund centered on Bitcoin, potentially opening up new avenues for investors to participate in the cryptocurrency market.
Elsewhere, investors seem to be keeping a close eye on the macroeconomic indicators for a sense of movement in the crypto space.
Buy Bitcoin NowHistorically, digital currencies have exhibited a correlation with broader financial market movements, often mirroring the fluctuations observed in the U.S. equity markets. Consequently, investors have been closely monitoring inflation data and the overall economic health as indicators to anticipate Bitcoin’s future trading patterns. By examining such information, investors aim to gain insights into the potential trajectory of Bitcoin in the market.
Ayyar concluded:
“Overall, crypto has also been lagging the traditional equity markets, hence this is also kind of a catchup move in a sense.”
