BTC Price Rally: What BlackRock's ETF Move Has To Do With Bitcoin's Sudden Boost

Since BlackRock's announcement, Bitcoin has risen approximately 9 per cent.

Cryptocurrency markets are also influenced by the US government's intensified crackdown on the sector and broader macroeconomic factors.

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In a significant development for crypto investors, Bitcoin has surpassed $28,000, reaching its highest point this month, fueled by BlackRock's bid to establish a US exchange-traded fund (ETF).  During New York trading, the largest cryptocurrency experienced a 5.3 per cent surge, hitting a peak of $28,142, its highest level in over two weeks. Other cryptocurrencies like Ether and BNB exhibited comparatively smaller fluctuations, as per Bloomberg.

On June 15, BlackRock submitted an application for a Bitcoin ETF to the Securities and Exchange Commission (SEC). While the SEC has previously shown reluctance to approve such funds, this recent attempt carries weight due to the involvement of the world's largest asset manager.

"The BlackRock ETF application seemed to have sparked the rally, but there are certainly other factors at play," remarked Aaron Brown, a crypto investor and Bloomberg Opinion contributor.

Simultaneously, a new cryptocurrency exchange backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp. announced its launch, potentially reshaping the digital asset landscape amidst increased scrutiny in the United States. Deutsche Bank AG has also applied for regulatory permission to offer custody services for digital assets, including cryptocurrencies.

"Established players are now recognising an opportunity to gain market share with the Citadel/Fidelity launch of EDX today and Deutsche Bank seeking a digital asset custody license in Germany," noted Kyle Doane, a trader at Arca.

Since BlackRock's announcement, Bitcoin has risen approximately 9 per cent, pushing the token above a resistance zone of around $27,000 based on key chart patterns.

This ETF application coincides with Grayscale Investments LLC's ongoing legal dispute with the SEC to convert the Grayscale Bitcoin Trust into a physically-backed ETF. Speculation suggests that BlackRock's move could potentially strengthen Grayscale's case, leading to a narrower discount between the trust's net asset value and market price.

Cryptocurrency markets are also influenced by the US government's intensified crackdown on the sector and broader macroeconomic factors, including expectations for further monetary tightening by the Federal Reserve after a pause in interest rate hikes.

Traders are eagerly awaiting clarity regarding the scale of anticipated economic stimulus in China, following recent cuts in borrowing costs by the country's central bank.

"The potential impact of China's stimulus on Bitcoin isn't receiving enough attention," remarked Tony Sycamore, a market analyst at IG Australia Pty.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.