- Bitcoin rose 9+% to $30,700+ in 24 hours, reaching its highest of value since early May.
- BlackRock applied to the SEC for an iShares Bitcoin Trust spot Bitcoin ETF.
- Bitcoin and Ethereum have gained 62% and 48%, respectively, since the start of the year, despite recent declines.
- EDX Markets, a new crypto exchange sponsored by a consortium of established Wall Street corporations including Charles Schwab, appears to have boosted cryptocurrency optimism.
- In recent weeks, most altcoins have fallen, increasing Bitcoin’s dominance to 48%.
- Jerome Powell will testify to Congress for two days this week.
- The Fed is still committed to 2% inflation.
- The next US Federal Reserve meeting is scheduled for July 25-26. Prior to that, the critical June 2023 inflation numbers are set to be announced on July 12, 2023
The potential for limited short-term downside in Bitcoin and certain altcoins may be influenced by the strength observed in the S&P 500 and the weakness observed in the U.S. Dollar Index. By contrast, Bitcoin is currently being traded at a value significantly lower than its recent peak of $31,000, which was attained on April 14th. This indicates a distinct disparity in the performance of the two aforementioned asset categories.
The current trend of Bitcoin exhibiting limited price movement is expected to persist for a further period. Traders of cryptocurrency will seek favorable catalysts that may propel the price beyond its current range. A circulating speculation within financial markets suggests that Fidelity Investments may potentially pursue the creation of a Bitcoin spot exchange-traded fund, subsequent to BlackRock’s filing for the same. In the event of such an occurrence, it would constitute a favorable indication for the financial markets.
An additional advantage observed in the cryptocurrency markets is the recent weakening of the U.S. Dollar Index (DXY). Throughout history, there has been a notable inverse correlation between the value of the United States dollar and that of Bitcoin. This correlation may serve to mitigate potential losses in Bitcoin and potentially initiate a rebound in its value.
Bitcoin adoption by corporations:
The primary factor behind the surge of the BTC/USD pair can be attributed to the adoption of Bitcoin by numerous prominent corporations, despite apprehensions regarding regulatory compliance. Blackrock recently disclosed that it had submitted official paperwork to the Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF).
If approved, this would mark the inaugural instance of a Bitcoin exchange-traded fund (ETF) in the United States. The sole option currently accessible pertains to monitoring Bitcoin futures.
The launch of a cryptocurrency exchange occurred on Tuesday, which received support from prominent financial institutions such as Fidelity, Citadel, and Schwab, all of which are associated with Wall Street. The non-custodial exchange has exclusively enlisted BTC, ether, litecoin, and bitcoin cash, which have not been classified as securities by the SEC.
Deutsche Bank, the largest financial institution in Germany, has disclosed its plans regarding Bitcoin. The corporation has submitted an application for a licence to provide custody services for Bitcoin. The licence was conferred upon Bafin, the primary financial regulatory body in the nation.
Deutsche Bank is endeavouring to expand its revenue within the corporate bank division, which caters to prosperous individuals and enterprises. The surge in Bitcoin’s value can be attributed to the anticipation of increased institutional adoption, as investors factored in the potential impact of significant corporate actions.
According to certain analysts, the regulatory measures taken against alternative cryptocurrencies may potentially benefit Bitcoin, as the Securities and Exchange Commission recognizes it as a form of digital commodity.
Bitcoin Price Analysis:
Over the past few days, the BTC/USD pair has been slowly going up. It went from $24,719 last week to over $30,700+ this week. The pair has moved past the 38.2% Fibonacci retracement line on the 4H chart. Buyers will try to push the price up to the $30,700-$32,500 resistance zone. This is an important level for the bears to defend because a break and close above it could start a new move up.
On the other hand, if the price drops sharply from where it is now and closes below $26,500, it will show that bears still sell when prices go up. The BTC/USDT pair could then go back to the strong support zone between $25,000 and $21,357.
Concluding Thoughts:
BlackRock has submitted an application to the Securities and Exchange Commission (SEC) for the inclusion of a Bitcoin exchange-traded fund (ETF) named the iShares Bitcoin Trust.
In the event of authorization, a portion of BlackRock’s $9 trillion in assets under management may be transferred to the iShares Bitcoin Trust. In my perspective, the desire of BlackRock to acquire market share is a favorable indication for GBTC shareholders, notwithstanding the potential disapproval of the aforementioned application. Members of BlockChain Reaction are granted privileged admission to our tangible investment collection. Please refer to the comprehensive list of our investments.
