The crypto market is back on a fresh bullish path after a gruesome couple of weeks. Bitcoin price tumbled below $25,000 following the U.S. Federal Reserve decision on interest rates. While a pause on interest rate hikes was a positive sign for risk assets like BTC, the comments made by the bank’s Chair Jerome Powell triggered the sell-off.
Based on Powell’s hawkish speech, investors should expect more interest rate hikes, making this a temporary injunction. On the other hand, investors hoped that the era of hikes if finally coming to an end.
Nevertheless, the Fed is still committed to bringing inflation down to 2%.
Bitcoin price, which felt the pinch after the Fed announcement, has bounced from support at $24,700 and is trading at $25,500 on Friday. Live price data tracked by CoinGape, shows a 2% bullish pump in the last 24 hours.
The uptick in BTC price can be attributed to a few factors including the extremely oversold conditions. However, the news of Blackrock filing for a spot Bitcoin exchange-traded fund (ETF) could be the primary driving force.
And will hit the SEC wall same as the GBTC. GBTC vs SEC issues: Index Price, BTC price difference between spot and futures…etc.
But it is good news, it means a big player is stepping in and the regulation dispute is unfolding in positive way
— SimeC (@c_sime) June 16, 2023
Blackrock Takes First Step Toward a Spot Bitcoin ETF
Global behemoth Blackrock took the initial step toward one of the most coveted regulatory approvals in the crypto industry on Thursday. According to a report by CNBC, the company filed an application with the Securities and Exchange Commission (SEC) eyeing the launch of iShares Bitcoin Trust.
Should it receive the green light, the ETF will serve as a gateway for investors to gain crypto exposure, courtesy of a product by one of Wall Street’s heavyweight corporations.
“The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding and trading bitcoin directly on a peer-to-peer or other basis or via a digital asset exchange,” the filing reads in part.
So far, the SEC has held back from green-lighting the roll-out of a spot bitcoin ETF on American soil. It’s currently entangled in a legal tussle with Grayscale concerning the firm’s quest to metamorphose its Grayscale Bitcoin Trust into an ETF. The resolution of this dispute is anticipated later within the year.
Bitcoin Price on The Move Eyeing $28,000
The largest crypto is hovering slightly above $25,500 following Thursday’s knee-jerk reaction to Blackrock’s spot BTC ETF filing. A buy signal also flashed from the Moving Average Convergence Divergence (MACD) indicator, calling more investors into the market to book long positions in BTC.
As per the On-Balance-Volume (OBV) inflow volume is now higher compared to outflow volume. This implies that investors and traders are betting on the recovery to carry on into the weekend and shrink the gap to $28,000.
Despite the uptick above $25,500, the technical market structure is still not strong enough. Therefore, traders should be cautious to avoid bull traps, especially if resistance at $26,000 is not reclaimed.
BlackRock filed for a #Bitcoin spot ETF.
Here’s what happens when a big fund increases bitcoin demand. pic.twitter.com/QhTaCG2bZm
— Julio Moreno (@jjcmoreno) June 15, 2023
On the other hand, short-term support at $25,400 must hold to reduce the probability of the downtrend gaining momentum. Traders should tread with the next buyer congestion at $24,700 in mind, knowing that it may determine if BTC goes to $20,000 or sustains the uptrend to $28,000.
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