Bitcoin Hits $30K: Institutional Investors Lead the Bull Market

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• Bitcoin’s recent 21.5% gains in 11 days could be attributed to BlackRock’s spot Bitcoin exchange-traded fund (ETF) filing and other events such as HSBC Bank introducing its first local cryptocurrency services.
• The ProShares Bitcoin Strategy ETF, a Bitcoin futures fund, experienced its largest weekly inflow in a year at $65 million with assets topping $1 billion.
• A proposed bill in the U.S. House of Representatives aims to prohibit the SEC from denying digital asset trading platforms registration as a regulated alternative trading system.

Bitcoin Price Rally

Bitcoin BTC $30,258 has sustained the $30,300 resistance for the past three days after a failed rally above $31,000 on June 23. Curiously, this happened while gold reached its lowest level in three months, trading at $1,910 on June 22 down from a peak of $2,050 in early May.

Reasons Behind Rally

Analyzing what caused the recent price rally is essential to understanding how traders are positioned on BTC margin and futures markets. Some analysts attribute Bitcoin’s recent 21.5% gains in 11 days to BlackRock’s spot Bitcoin exchange-traded fund (ETF) filing and other events such as HSBC Bank introducing its first local cryptocurrency services using three listed crypto ETFs. Moreover, the ProShares Bitcoin Strategy ETF experienced its largest weekly inflow in a year at $65 million with assets topping $1 billion which is one of the most popular among institutional investors.

Regulatory Environment

The U.S crypto regulatory environment may be improving after enforcement actions from the Securities and Exchange Commission aimed at exchanges supposedly operating as unregistered securities brokers. Federal Reserve governor Michelle Bowman said that financial institutions had been left in a “supervisory void ” in terms of emerging technologies including digital assets and policymakers have been relying on “general but non-binding statements,” leaving substantial uncertainty and imposing new business requirements after significant investments have been made .

Proposed Bill

A draft bill was proposed by U.S House of Representatives aiming to prohibit the SEC from denying digital asset trading platforms registration as a regulated alternative trading system which would allow firms to offer “digital commodities and payment stablecoins.”

Conclusion

Investors now question how solid Bitcoin’s $30,000 support is so analyzing what caused the recent price rally is essential to understanding how traders are positioned on BTC margin and futures markets and understanding that regulatory environment may be changing could potentially lead to further growth for cryptocurrencies moving forward..