Why is Bitcoin's Price Rising Right Now?

As investors' anticipation over BlackRock and Fidelity Investments' applications for spot BTC ETFs fueled hopes for a BTC price rebound, the price of Bitcoin surged over $28,000.

Source: www.coindesk.com

On June 20, the price of Bitcoin increased and reached a 14-day high of $28,103. Bullish traders are probably hoping that BTC can end its 10-week losing run in light of the recent unfavorable news of the SEC taking action against Binance and Coinbase. BTC has recently experienced some upside. 

The surge in Bitcoin's price today can be attributed to several factors, with one of the main drivers being the growing institutional interest in Bitcoin. Major businesses like BlackRock and Fidelity Investments have shown increased interest in Bitcoin and are reportedly in the process of applying for a spot Bitcoin ETF. The price of Bitcoin is rising today for the following reasons.

A Bitcoin Rise Is Sparked By a BlackRock ETF Registration

After BlackRock submitted an application for a spot BTC ETF in the U.S. on June 15, the Bitcoin price began to increase. BlackRock is the biggest of the current candidates, despite not being the first to submit an application to the SEC for a Bitcoin ETF.

Despite multiple applicants, including Cathie Wood's ARK and 21Shares, which has submitted three applications for approval, the SEC has yet to approve a spot Bitcoin ETF. Grayscale is another business that was turned down for a Bitcoin ETF. Following the denial, the business sued the SEC in an appeals court to defend the legitimacy of Bitcoin futures.

With more than $8.5 trillion in assets under management, BlackRock is the biggest asset manager in the world. According to the Securities and Exchange Commission (SEC) filing, the company will also use Coinbase to store the Bitcoin in the trust. This development has had a positive impact on the Grayscale Bitcoin Trust (GBTC) as well. The discount on GBTC shares has decreased and is approaching its highest levels since 2023, currently standing below 37%

Traders Perceive The Declining US Dollar Index as a Positive Factor for Bitcoin's Price

The declining U.S. dollar index (DXY) is another encouraging indication for the price of Bitcoin. In the past, sentiment has increased for risky assets like Bitcoin when the DXY index declines.

Source: Tradingview

According to some market investors, the recent decision by the Federal Reserve (Fed) to postpone interest rate hikes indicates potential economic expansion in the United States, which could lead to further depreciation of the currency. In such a scenario, the Bitcoin price might rise in tandem with the stock markets. It is commonly observed that the value of Bitcoin tends to increase during favorable macroeconomic conditions.

Cathie Wood Predicts That Bitcoin Will Hit $1 Million

The Bitcoin Fear & Greed Index has risen to a three-month-high, despite the fact that the price of Bitcoin is now displaying some bullish momentum following the BlackRock announcement and a weaker dollar. However, other analysts predict that the price of Bitcoin will remain flat for at least 18 months.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.