What Causes Bitcoin Prices to Increase Today?

The price of Bitcoin (BTC) rose to a 14-day high of $28,103 on June 20th, despite recent news of the SEC’s crackdown on Binance and Coinbase. This has been welcomed by bullish traders who are hoping that BTC can break its 10-week losing streak.

It appears that the rally has been largely driven by the increasing involvement of institutions such as BlackRock and Fidelity Investments in Bitcoin, with both companies reportedly in the process of submitting an application for a Bitcoin ETF.

Here are some other explanations for why the Bitcoin price is up today.

Peter McCormack’s Real Bedford Football Club is bringing Bitcoin into the spotlight.

BlackRock ETF filing sparks a Bitcoin rally

The Bitcoin price began to surge after BlackRock submitted an application to the SEC for a Bitcoin ETF in the U.S. on June 15. Although BlackRock is not the first to apply for a Bitcoin ETF, they are the biggest out of all the applicants.

To date, the SEC has denied the approval of a Bitcoin ETF, despite multiple applications from entities such as Cathie Wood’s ARK and 21Shares, which has submitted three requests for approval. Grayscale also had its Bitcoin ETF proposal refused, and consequently took the SEC to court to demonstrate the validity of Bitcoin futures.

BlackRock, the world’s largest asset manager with more than $8.5 trillion in assets under management, has stated in a filing with the SEC that it will use Coinbase to safeguard the Bitcoin in the trust.

The Grayscale ETF has also seen a surge due to the application. The discount rate is nearing its 2023 peak and is currently below 37%.

Traders believe the cooling US dollar index is good for Bitcoin price

A further indication of a potential rise in the price of Bitcoin is the declining U.S. dollar index (DXY). Historically, when the DXY index has dropped, sentiment for risk assets such as Bitcoin has improved.

Since the Federal Reserve suspended rate hikes last week, some market participants believe the US economy could expand and the dollar could remain weak. If this is the case, Bitcoin could remain in an uptrend alongside equity markets. The healthier the macro environment is, the more beneficial it will be for Bitcoin’s value.

Cathie Wood is very optimistic about Coinbase stock and believes that Bitcoin will eventually reach a value of one million dollars.

Despite Bitcoin’s recent bullish trend following the BlackRock news and weakening of the dollar, the Bitcoin Fear & Greed Index has hit a 3-month high. Conversely, some analysts project that the Bitcoin price will remain stagnant for the next 18 months.