In just two days, Bitcoin recovered its lost ground and rebounded against the trend.
Tonight, Bitcoin broke through $30,000, rising to a high of $30,700, with a 24-hour increase of more than 10%; and Bitcoin's market capitalization share also returned to above 50%, reaching 51.7%, setting a record high since April 2021.
One theory about this round of market rise is short squeeze. The intensified regulation in the past two weeks and the fact that Bitcoin fell below the $25,000 support level have caused a strong short-selling sentiment in the market. According to Coinglass data, the BTC long-short ratio reached a low of 0.94 on June 13. In the market sentiment survey, 36% of respondents said they were "bearish" and 15% said they were "extremely bearish", more than half, with only 29% of respondents bullish.
In addition, the positive news is that traditional financial giants have been taking intensive actions recently, applying for Bitcoin ETFs and trust funds and launching crypto trading platforms, opening up the entry channel for traditional funds.
On June 15, BlackRock, with an asset management scale of $8.59 trillion, took the lead and its iShares division submitted an application for iShares Bitcoin Trust to the SEC. Influenced by this news, BTC rose by nearly 5% that day, reaching $26,500 at one point, stopping the downward trend.
Anthony Pompliano, co-founder of Morgan Creek Digital, commented that BlackRock's actions may attract Wall Street giants to imitate, and many Wall Street companies may launch fast-follow products to compete with BlackRock. Media attention may lead to funds flowing into Bitcoin.
Market developments have verified Anthony Pompliano's prediction. Today, asset management company WisdomTree submitted an application for a Bitcoin trust fund, and asset management giant Invesco also resubmitted its application for a spot Bitcoin ETF.
In addition, it is rumored that Fidelity has also started crypto action. Arch Public co-founder Andrew Parish revealed that Fidelity, the world's third largest asset management company with $4.24 trillion in assets under management, may be considering acquiring Grayscale and applying for a Bitcoin spot ETF. This news has not been officially confirmed by Fidelity.
Although Fidelity has not yet applied for a Bitcoin ETF, its investment in the crypto exchange EDX Markets announced yesterday that it will be officially launched soon, intending to seize the market at a time when regulators are suing Coinbase and Binance. It is understood that EDX Markets is a non-custodial exchange that does not directly handle customers' digital assets or directly serve individual investors, and only provides four cryptocurrency transactions, including BTC, ETH, LTC and BCH - these assets have not been identified as securities by the US SEC.
Looking at the investors of EDX Markets, there are many top traditional institutions behind it, including Citadel Securities (with assets under management of US$35 billion), Charles Schwab, Sequoia Capital, Paradigm, Miami International Holdings, DV Crypto, GTS, GSR Markets LTD and HRT Technology.
For professional investors, the entry of large traditional financial institutions not only serves as a good demonstration effect, but they are also more willing to allocate investment products to investment tools supported by large traditional financial institutions. More funds will also enter the crypto world through the bridges built by traditional institutions.
Of course, it seems too early to say that the bull market has started now. After all, the external financial environment has not improved significantly, and it is difficult for crypto finance to survive on its own and develop an independent trend.
