BlackRock’s ETF Application
Investor sentiment has improved in recent days, with crypto assets starting to regain their momentum, driven by both technical and fundamental factors. According to analysts, one key reason behind this recovery is BlackRock’s application to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF on July 16.
Speculation around the potential approval of the first Bitcoin ETF in the U.S. has helped the crypto market recover, and it’s worth mentioning that BlackRock, an investment firm managing over $9 trillion in assets, has applied for 576 ETFs in the past, with only one rejection.
The cryptocurrency market capitalization has increased by almost 5% since BlackRock’s application, and analysts predict that SEC approval could lead BlackRock to purchase all the Bitcoin available on exchanges. Market analyst Lark Davis remarked:
“Only around 10% of all Bitcoin (worth $50 billion) is sitting on exchanges. Just 0.5% of BlackRock’s funds moving into BTC would buy every coin available.”
Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, stated that BlackRock’s proposal has “good odds” of receiving U.S. regulatory approval. However, every investment and trading decision involves risk, and individuals should conduct their own research. Major cryptocurrency tracker Whale Alert reported on Sunday that a massive Bitcoin transaction of 10,000 BTC was sent to a newly created wallet with no registered owner. This could indicate either a purchase or a whale moving Bitcoin for redistribution purposes.
SEC Approval Could Significantly Impact the Price
SEC approval would undoubtedly have a positive effect on Bitcoin’s price and many other cryptocurrencies. However, investors should keep in mind that the U.S. Securities and Exchange Commission has rejected several Bitcoin ETF applications recently, including those from major asset managers like VanEck, Ark Invest, and Bitwise.
The SEC continues its efforts to bring cryptocurrency operators in the U.S. under the same regulatory framework as stocks and bonds.
Blockchain analytics firm Glassnode reported this Sunday that the amount of Bitcoin held on cryptocurrency exchanges has dropped to a three-month low. According to data from Glassnode, the Bitcoin balance on exchanges decreased to 2,281,978.198 BTC, just below the previous low of 2,282,204.204 BTC recorded on June 17.
This might not necessarily signal another selloff, but it could indicate rising uncertainty among investors following recent regulatory actions against major crypto players like Binance and Coinbase. Both of these exchanges have faced lawsuits from the SEC.
While the outcome of these lawsuits is still uncertain, the situation has caused anxiety among crypto investors, leading to a shift of Bitcoin holdings from exchanges to private wallets for safekeeping. The cryptocurrency market remains highly volatile, and traders should keep in mind that selloffs could accelerate if Bitcoin falls below the $25,000 threshold.
Analîza Teknîkî ya Bitcoin (BTC).
Bitcoin (BTC) has increased by approximately 8% since June 15, 2023, rising from $24,750 to a peak of $26,783. Currently, Bitcoin (BTC) is priced at $26,540, still over 40% lower than its 2022 highs recorded in March. The chart below shows that Bitcoin (BTC) has been in a strong downtrend since November 2021, and even with the recent uptick, BTC remains under pressure when viewed from a broader perspective.
Ji bo Bitcoin (BTC) Astên Piştgirî û Berxwedanê yên sereke
In this chart (covering the period from January 2023), key support and resistance levels are highlighted to assist traders in understanding potential price movements. Bitcoin (BTC) bulls seem more confident in recent days, and if the price rises above $28,000, the next target could be the resistance at $30,000. The critical support level is $25,000, and if Bitcoin falls below this level, it could signal a “SELL” action, with the next target near $23,000. If the price drops below $23,000, a strong support level, the next target may be around $20,000.
Reasons for Potential Bitcoin (BTC) Price Increase
Bitcoin, which currently makes up nearly 50% of the entire crypto market, has risen nearly 8% since June 15, from a low of $24,750. If the price surpasses the resistance at $28,000, the next potential target could be around $30,000. One reason behind this surge is BlackRock’s application for a Bitcoin ETF, and analysts believe that the ETF application has a “strong chance” of getting U.S. regulatory approval.
Indicators of Further Decline for Bitcoin (BTC)
Bitcoin is currently trading above $26,000, but a drop below this level could signal a move toward the critical support at $25,000. The highly volatile nature of cryptocurrency could prompt investors to sell BTC if any negative news surfaces, such as BlackRock’s SEC application being rejected or a major crypto firm declaring bankruptcy.
Nerînên Pispor û Analîstê
From a low of $24,750 on June 15, Bitcoin (BTC) surged to a high of $26,783 on June 17, marking an 8% increase in a short time. The main question is whether Bitcoin still has more bullish potential, which depends on both technical and fundamental factors.
Increasing speculation about the approval of the first Bitcoin ETF in the U.S. is certainly a positive development for Bitcoin, and according to Adam Cochran, a partner at Cinneamhain Ventures, BlackRock’s ETF application has “strong odds” of gaining approval.
At present, bulls control the price of Bitcoin, but the volatile nature of cryptocurrency may still scare investors into selling BTC if negative news hits the market.
Ava dikan: Cryptocurrencies are highly volatile and not suitable for everyone. Never invest money you cannot afford to lose. The information on this site is provided for educational purposes only and should not be construed as investment or financial advice.
