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Bitcoin price is up 3.2% from yesterday’s low of $24,827. At press time, BTC was trading at $25,590 and has thus reclaimed two very important price levels for the time being: First, the price of bitcoin has once again risen above the 200-day exponential moving average (EMA). Currently at $25,299, and second, the price is still back above the 200-week EMA at $25,304 (with the weekly close being important).
As always, there are multiple narratives for yesterday’s price move. The clearest narrative and the biggest topic in the market currently is the Bitcoin Spot ETF filing by BlackRock, the world’s largest asset manager with the US Securities and Exchange Commission (SEC). A Spot ETF Seen as the Holy Grail That Could Eventually Open the Floodgates for Institutional Liquidity, Like Bitcoinists informed of Today.
Reasons for the bitcoin rally
BlackRock is believed to have a strong chance of getting the first spot-based bitcoin ETF approved by the SEC due to its political influence and network. According to many experts, the new capital inflows made possible could have the potential to be the catalyst for the next bull run.
“The best thing that could happen to BTC is through a BTC ETF,” said Mike Novogratz, CEO of Galaxy Digital. Said Tomorrow. Accordingly, this news is likely to generate bullish sentiment in the market.
However, as always, many factors play a role in price movement on the bitcoin market. One issue that should not be neglected is always the macro situation and the US Dollar Index (DXY). The latter has seen a setback in the last three days, falling from 104.70 to currently at 102.21. It is likely to be in favor of BTC for now.
As for the macro situation, Wednesday’s interest rate decision by the US Federal Reserve (Fed) certainly still plays a role. The main story is that the market is not buying Fed Chair Jerome Powell’s aggressive stance. Analysts believe that the two more rate hikes announced in the dot plot are a ploy to contain the bullish breakout in the financial markets.
Lastly, the decoupling of BTC from the S&P 500 has also been observed in recent days. Yesterday’s move could be the start of a catch-up rally in which BTC recuperates from unnecessary losses caused by Tether FUD and SEC lawsuits against Coinbase and Binance US.
Furthermore, bitcoin holders continue to show historically high levels of confidence. As on-chain analyst Axel Adler Jr. explained via Twitter, total BTC inflows across all exchanges are currently low, indicating that bitcoin holders are in no rush to sell their coins.
Total BTC inflows across all exchanges are currently low, indicating that bitcoin owners are in no rush to sell their coins. #bitcoin #HODL pic.twitter.com/JTscheVcgO
– Axel 💎🙌 Adler Jr (@AxelAdlerJr) June 16, 2023
As NewsBTC reported, yesterday’s Tether FUD may also have once again marked a bottom for Bitcoin. Within the previous bear market, there have already been three de-pegging events of stablecoins, all marking local bottoms.
At press time, BTC changed hands for $25,590.
Featured image from iStock, chart from TradingView.com
