Bitcoin price is up 3.2% since yesterday’s low of $24,827. At the time of writing, BTC was trading at $25,590, reclaiming two all-important price levels at the moment: first, Bitcoin price has once again risen above the 200-day exponential moving average (EMA) currently at $25,299, and second Second, the price is also now back above the 200-week EMA at $25,304 (with the weekly close becoming critical).
As always, there are several stories about yesterday’s price hike. The most obvious story and currently the hottest topic in the market 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 is seen as the holy grail that could finally open the floodgates of institutional liquidity, like Bitcoinist reported Today.
Reasons for the Bitcoin Rally
BlackRock is believed to have a high chance of getting the first spot-based Bitcoin ETF approved by the SEC due to its political clout and network. The new capital inflows that have been made possible could, according to many experts, have the potential to be the next bull run catalyst.
“BlackRock getting a BTC ETF through would be the best thing that could happen to BTC,” said Mike Novogratz, CEO of Galaxy Digital said yesterday. Accordingly, the news is likely to have created bullish sentiment in the market.
However, as always, there are several reasons behind the price movement in the Bitcoin market. A non-negligible point is always the macroeconomic situation and the US dollar index (DXY). The latter suffered a setback in the past three days and fell from 104.70 to currently 102.21. This has likely favored BTC for the time being.
As far as the macroeconomic situation is concerned, Wednesday’s interest rate decision by the US Federal Reserve (Fed) certainly plays a role. The main story is that the market is not buying Fed Chairman Jerome Powell’s aggressive stance. Analysts believe that the two additional rate hikes announced in the dot plot are a feint to avoid a bullish breakout in the financial markets.
Finally, the decoupling of BTC from the S&P 500 has also been observed in recent days. Yesterday’s move could have started a catch-up rally as BTC shrugs off the unnecessary losses caused by the Tether FUD and the SEC lawsuits against Coinbase and Binance US.
In addition, Bitcoin hodlers continue to show historically high conviction. As on-chain analyst Axel Adler Jr explained via Twitter, overall BTC inflows across all exchanges are currently low, suggesting that Bitcoin holders are in no hurry 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 have marked the bottom for Bitcoin again as well. During the last bear market, there have already been three de-pegging events of stablecoins, all of which marked the local bottom.
At the time of writing, BTC switched hands at $25,590.
Featured image from iStock, chart from TradingView.com