3 reasons why Bitcoin exceeded $30,000.
On June 21, the price of Bitcoin rose more than 11% to $30,500, leading to a string of liquidations, most of which were predictably shorts.
Many members of the crypto community are wondering why the price of Bitcoin is rising? This is most likely due to three possible reasons.
BlackRock files for Bitcoin ETF
BlackRock is the world's largest asset manager and has taken a huge step forward in legitimizing Bitcoin as an asset class worthy of investment.
The company has filed an application for a spot Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC).
You could argue that many companies that have sought approval from the SEC for similar applications have been rejected without reason. However, there is one important difference in this case - BlackRock had previously filed 575 and only 1 of them was rejected, and that was almost ten years ago.
Needless to say, an approved spot Bitcoin ETF will have a monumental impact on the entire industry as it will legitimize the asset and allow institutional investors to participate without major hassle.
Of course, the market correctly assessed this event and responded with the expected growth.
Other Bitcoin ETF Applications
The good prospects have encouraged other large companies to resubmit their bids, and some for the first time. For example, global financial services company WisdomTree will again try to launch a Bitcoin ETF in the United States.
Invesco, another investment management firm with about $1.4 trillion in assets under management, has also re-filed for a spot Bitcoin ETF. For the first time such a document was sent to the SEC back in 2021 together with Galaxy Digital.
Wall Street-backed cryptocurrency exchange EDX goes live
A cryptocurrency exchange called EDX, backed by Charles Schwab, Citadel Securities and Fidelity Digital Assets, launched a couple of days ago and officially began trading.
We emphasize that the exchange trades cryptocurrencies such as BTC, ETH, LTC and BCH, and none of them were called âsecuritiesâ in the US Securities and Exchange Commission lawsuits against Coinbase and Binance.
Could the price of BTC rise even more?
In the latest Bitfinex Alpha report, analysts from the popular exchange noted the stability of the crypto market amid ongoing regulatory turmoil in the United States.
However, they also argued that despite the significant upward move, price failed to trigger a short squeeze:
Bitcoin's quick rebound last week from the significant $25,000 barrier did not result in a short squeeze, indicating that the price increase was not a consequence of short liquidations, but perhaps the result of significant long futures positions holding up the price.
Recall that a short squeeze occurs when there is a cascading forced liquidation of short positions. Accordingly, when many short positions are liquidated at once, it puts significant upward pressure on the price, leading to rapid growth.
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