He Bitcoin is one of the protagonists of this Wednesday June 21, since it rises strongly and manages to overcome the barrier of US $ 30,000, when trading at $30,189.94. It occurs after suffering days of strong bearish pressure by the demand of the US Securities and Exchange Commission (SEC) vs. Binance and Coinbaseas well as the decision of the Federal Reserve (Fed) to project new rate hikes for the remainder of the year.
This Wednesday, June 21, the cryptocurrency managed to reach values that it had not achieved since last April 18, when it was listed on $30,392 and then, quickly, fall to the $28,826.
Now, largest crypto by market capitalization manages to recover. One of the events that led to the promotion was the decision of BlackRock to request approval of a Bitcoin ETF to the SEC. This shows that the organism not only has faith in the digital asset, but who continues to see in him a great potential.
Besides, Binance also reached a settlement with the SEC to avoid the total freezing of its assets in the US. The agreement seeks to protect billions of dollars of userswithout reaching the total paralysis of the platform, as originally required by the financial regulator.
On top of this, retail investors are feeling FOMO (‘fear or missing out’ or fear of missing an important event).
Bitcoin: the rise under the magnifying glass of analysts
The SEC’s losing battle against Binance and Coinbase, added to the request of BlackRock, the world’s largest asset manager with US$ 8.5 trilliongenerated a positive sentiment in the cryptocurrency market, he explained to Ámbito Financiero Mauro LibermanCrypstation partner and blockchain and metaverse specialist.
On the other hand, Liberman pointed out, the cooling of the dollar index also had a positive impact on Bitcoin. This is because generally, “when the DXY index weakens, confidence in Bitcoin increases. Also, no immediate interest rate hikes are expected in the US, which could also boost the equity market,” the analyst said.
However, despite the current bullish momentum of the Bitcoin price in the short term, “it is important to note that the global economic context remains extremely complex“, warned Liberman and added: “It is likely that we will see a negotiation in a sideways range between $25,000 and $32,000 through the end of the year“.
Why is the price of Bitcoin increasing?
- The positive price dynamics of Bitcoin, which remains the market leader, supported the growth of other cryptocurrencies. For example, Ethereum is up more than 12% over the same time period.
- Likewise, one of the largest financial conglomerates in Germany, Deutsche Bank, is entering the digital asset market. The bank will guard cryptocurrencies. The organization’s plans for the development of the crypto direction were announced in February 2023.
- Wall Street financial giants Citadel and Fidelity have teamed up to launch a decentralized exchange. The trading platform is called EDX Markets. The launch of the site took place on June 20.
- One of the world’s largest investment firms, Invesco, which manages $1.4 trillion in assets has applied to launch a Bitcoin spot ETF. In 2021, Invesco was already trying to get a similar tool approved. The attempt failed.
It is important to note that the price of Bitcoin increased despite the SEC onslaught against the crypto market. The Commission began to expand the list of cryptocurrencies that their representatives consider to be illegally issued securities. In which it already included many currencies such as: Cosmos (ATOM), Binance Coin (BNB) and Solarium (SUN).
Bitcoin: China’s efforts to lower its price
The Chinese government has worked hard to persuade its citizens that the Bitcoin would lose all its value, however, its predictions so far have come off considerably of reality. Cryptocurrency has experienced a growth of approximately 36% since the communist government claimed in 2022 that it would lose its value.
In the middle of a bear market, China Tried to Take Advantage of a Massive Market Dropwarning cryptocurrency investors that the price of Bitcoin was headed towards nonexistence.
In June 2022, China’s national media agency, Economic Dailyissued a warning about Bitcoin in order to assure citizens that said asset was a “string of digital codes without any value”. Today in the West, great institutions like Deutsche Bank and BlackRock show faith in the potential of the digital asset.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
