Bitcoin holds above $30k

Last Friday (June 23^rd), the world’s largest crypto by market cap skyrocketed to a one-year high.

This surge has now propelled Bitcoin’s year-to-date gains to over 83% at the time of writing, and is set for its best first half of the year since 2019.

Bitcoin’s recent leg up came hot on the heels after BlackRock surprised markets with an unexpected application on June 15^th for a spot Bitcoin ETF (exchange-traded fund).

News of BlackRock’s Bitcoin ETF application has already spurred about US$ 200 million in inflows into digital-asset investment products, according to a report from CoinShares.

That’s the highest weekly inflow since July 2022, and most (94%) of last week’s inflows went into Bitcoin, which also ended a run of 9 straight weeks of outflows.

 

Who is BlackRock? Why does its Bitcoin ETF application matter?

BlackRock is the biggest money manager in the world, with some US$ 9 trillion in assets under management.

With its clout, BlackRock’s Bitcoin ETF promises to open up access to a whole new legion of investors.

Such a spike in demand could push prices even higher, provided BlackRock’s ETF does get approved of course.

 

BlackRock’s Bitcoin ETF application may spell relief to crypto world

BlackRock’s application is also welcomed news for an asset class that’s been parched of liquidity since the crypto winter that began over a year ago.

Recall the implosion of big-name stablecoins such as TerraUSD and Luna, to FTX’s bankruptcy in late-2022, and more recently, the lawsuits by the SEC (US Securities and Exchange Commission) against major exchanges such as Binance and Coinbase.

 

When might we know the official decision on BlackRock’s Bitcoin ETF application?

BlackRock’s Bitcoin ETF application may only know its final fate in Q1 2024.

The SEC is expected to merely acknowledge the filing in August 2023. After that, the SEC is able to delay its decision for up to 195 days, which brings us to February/March 2024.

However, according to Bloomberg Intelligence, note that the SEC has denied every single one of the 32 spot crypto ETF applications so far.

 

Perhaps BlackRock might know/sense something the rest of us don’t?

And it’s such rumours and expectations that have driven Bitcoin’s prices higher recently.

But it remains to be seen whether such fervour is enough to set the $30k region as a strong-enough base for Bitcoin to eventually move even higher.

After all, recession fears still loom large alongside other macro headwinds, while the crypto world still battles with persistent industry-specific woes, including a tightening regulatory noose.

 

Looking at Bitcoin’s weekly charts above …

Bitcoin may yet claim more gains and climb past the $32k mark, before hitting resistance around the $32,363 - $32,940 region which had been a key battleground between bulls and bears in the first half of 2022.

However, if more positive developments are not forthcoming for crypto fans and the recent feel-good momentum start to wane, that could drag prices back below the psychologically-important $30k mark. Support may then arrive at the 21-period simple moving average (SMA), with stronger support set to arrive at $24759.