Bitcoin (BTC) price is up on June 20, reaching a 14-day high at $28,103. The fresh upside from BTC comes as recent negative news of the SEC cracking down on Binance and Coinbase and bullish traders are likely hopeful that BTC can break its 10-week losing streak.
Daily cryptocurrency market performance. Source: Coin360
A primary catalyst for the rally appears to be the growing institutional interest in Bitcoin from companies like BlackRock and Fidelity Investments, both of which appear to be in the process of filing for a spot Bitcoin ETF.
Here are a few other reasons why Bitcoin price is up today.
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BlackRock ETF filing sparks a Bitcoin rally
Bitcoin price started to rally after BlackRock filed for a spot BTC ETF in the United States on June 15. While BlackRock is not the first to apply with the SEC for a Bitcoin ETF, they are the largest of all current applicants.
To date, the SEC has refused to approve a spot Bitcoin ETF, despite numerous applicants including Cathie Wood’s ARK and 21Shares which has filed for approval three times. Another company that was denied a Bitcoin ETF is Grayscale. After the rejection, the company took the SEC to the appeals court to argue for the soundness of Bitcoin futures.
BlackRock is the world’s largest asset manager with over $8.5 trillion in assets under management. The firm will also utilize Coinbase to custody the BTC in the trust according to the filing with the SEC.
The application has also provided a boost to the Grayscale ETF. The discount is approaching 2023 highs and is under 37%.
Grayscale holdings. CoinglassTraders believe the cooling US dollar index is good for Bitcoin price
Another positive sign for Bitcoin price is the cooling U.S. dollar index (DXY). Historically when the DXY index retracts, sentiment for risk assets like Bitcoin increases.
U.S. dollar index. Source: TradingView
Since interest rate increases were paused by the Federal Reserve last week, some market participants think that the U.S. economy may grow and the dollar could continue to cool. If this happens, Bitcoin could continue to rally alongside equities markets. The better the macro climate, the better for Bitcoin price.
Why Cathie Wood is bullish on Coinbase stock and believes Bitcoin will reach $1 million
While Bitcoin price is showing some bullish momentum in the short-term after the BlackRock news and cooling dollar, the Bitcoin Fear & Greed Index has reached a 3-month high. On the other hand, some analysts believe the Bitcoin price will trade sideways for at least 18-months.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.