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Bitcoin experienced a significant uptick in its price on June 21, reaching a high of $30,122. This rise in price is seen in the aftermath of the SEC's stringent actions against Binance and Coinbase, with market optimists hoping that this could signal the end of Bitcoin's 10-week downturn.
Industry analysts believe that the crypto space has been in the midst of a credibility crisis, but the recent filings for spot bitcoin ETFs appear to have given a much-needed boost to the markets.
Data from CoinMarketCap reveals that Bitcoin is currently trading at $30,122, with a trading volume of $30,837,596,369 in the last 24 hours. The cryptocurrency has seen an increase of 4.25% during the same period, with a market cap of $584,786,336,856. Presently, there are 19,408,718 BTC coins in circulation, with a maximum cap of 21,000,000 BTC coins.
Blackrock's ETF Filing
Bitcoin's price started to climb on the Tuesday following the extended June holiday weekend in the U.S. The market began to more fully understand the ramifications of BlackRock's ETF filing, which seems to have spurred the rally.
Further evidence of institutional investors' increasing interest in crypto came later in the day, with Invesco and WisdomTree's re-filings for spot Bitcoin, despite the market turbulence caused by an uncertain regulatory landscape, persistent inflation, and other economic concerns.
In an interesting twist, the short-term correlation between Bitcoin's performance and the Nasdaq 100 index of technology stocks has gone negative for the first time since 2021.
Fear & Greed Index
The BTC Fear and Greed Index is currently at 65, indicating a market shift.
There's a palpable sense of anticipation in the crypto market as major institutional firms are ramping up their involvement in the industry. However, U.S. markets have taken a step back after weeks of gains, with technology stocks leading the decline. Both the Nasdaq Composite and S&P 500, with a significant weighting in technology, fell by 1.2% and 0.5% respectively. In Asia, the Hang Seng and Shanghai indexes fell by nearly 2% and 1.3% respectively as markets opened on a somber note.
Before this boost in confidence, an SEC crackdown had led to a drop in morale and a decline in liquidity within crypto markets. The government has initiated lawsuits against exchange operators Binance Holding and Coinbase and has classified a range of digital tokens as unregistered securities.
There are other potential hurdles ahead, including the potential for tighter monetary policy and signs that Bitcoin's current run may be overheating — a momentum indicator known as the 14-day relative strength index is signaling an overbought market.
Despite a 2022 crash that wiped out $1.5 trillion in digital assets, Bitcoin has rebounded by 83% this year. However, the cryptocurrency is still trailing its 2021 high by around $39,000. This break from the channel might indicate the end of the correction phase and the start of a new upward trend.
If the trend holds and a breakout is witnessed, Bitcoin could potentially ascend to $35,000, marking a new high for the year. However, if the price is rebuffed, it might return to the $27,200 resistance line of the channel.