The crypto market has risen up from the ashes of the SEC market crackdown like a phoenix. According to market reports, the crypto market cap rose 5% as sentiment rose on the back of two institutional bitcoin plays in the past week. Bitcoin price is up on June 21, reaching a 15-day high at $$ 29,086.
Crypto shakes of the negative weekend effect
The crypto market has been on an upward trajectory since the weekend. According to CoinGecko, The global cryptocurrency market cap today is $1.18 Trillion, a 6.5% change in the last 24 hours. Further, the total crypto trading volume in the last day is at $57.6B. On-chain data puts BTC dominance at 47.7% presently. Also, Ethereum‘s dominance is at 18.6%.
The new BTC surge follows the recent negative news of the SEC cracking down on Binance and Coinbase. However, BTC enthusiasts are likely hopeful that BTC can break its 10-week losing streak. According to Binance, the live price of Bitcoin is $ 29,086.81 per (BTC / USD) with a current market cap of $ 564.52B USD. 24-hour trading volume is $ 28.84B USD.
According to market analysts, the fundamental driver of the rally appears to be increasing institutional interest in Bitcoin from firms such as BlackRock and Fidelity Investments, both of whom appear to be in the process of filing for a spot Bitcoin ETF. The Bitcoin Fear and Greed Index currently sits at 59.
In addition, the Chinese government has worked hard to convince the public that Bitcoin will become worthless, but its predictions to date have been wildly inaccurate. The value of the original crypto has increased by approximately 36% since the Chinese government announced that it would be devalued in 2022. Here are a few more reasons why the Bitcoin price is up today.
BlackRock ETF filing leads to a Bitcoin rally
On June 15, BlackRock applied for a spot BTC ETF in the United States, and the price of bitcoin began to rise. While BlackRock is not the first company to apply to the SEC for a Bitcoin ETF, they are the largest.
Despite multiple applications, including Cathie Wood’s ARK and 21Shares, which has filed for approval three times, the SEC has yet to approve a spot Bitcoin ETF. Grayscale is another business that has been refused a Bitcoin ETF. Following the rejection, the company filed an appeal with the SEC to argue for the legitimacy of Bitcoin futures.
With over $8.5 trillion in assets under management, BlackRock is the world’s largest asset manager. According to the SEC filing, the firm will also use Coinbase to store the BTC in the trust. The Grayscale ETF has also benefited from the application. The discount is reaching the 2023 highs and is less than 37%.
China fails to convince its people that BTC is a risky asset
China has attempted to capitalize on a significant market collapse during the bear market. The People’s Republic of China cautioned crypto investors that Bitcoin values were “on their way to zero.” While it remains to be seen whether Bitcoin will eventually reach zero, it has not lost any value since the Chinese government issued the warning. On the contrary, Bitcoin has increased dramatically since the warning.
According to CoinGecko data, Bitcoin was trading around $20,000 when the Chinese government issued the warning in June 2022. At the time of writing, BTC is trading at $28,852, up roughly 36% in a year.
China was one of the first countries to take regulatory action against crypto. In 2017, Chinese regulators banned crypto exchanges from operating in the nation. Despite the blanket ban, Bitcoin proceeded to reach new highs, soaring 1,900% to $20,000 by the end of 2017.
US de-dollarization comes as a good index for the crypto market
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.
Since the Federal Reserve paused interest rate hikes last week, some market participants believe the US economy will strengthen, and the currency will continue to fall. If this happens, Bitcoin could continue to rise alongside the stock market. The better the macroeconomic atmosphere, the higher the Bitcoin price.
How is the rest of the market performing?
Outside of the majors, bitcoin cash (BCH) increased by 15%, stacks (STX) increased by 21%, and tokens of “Chinese Ethereum” conflux (CFX) increased by up to 30%, as traders likely gambled on outsized profits for these tokens 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.
