The world’s largest cryptocurrency is rallying as investors take comfort in the reversal from June 6 that saw BTC tumble below $31,000. The digital asset was up more than 3.28% on Thursday, rising as high as $31,500. Several analysts expect the price to continue rallying in the short term, but breaking through the $32,000 resistance might be challenging.
Cryptocurrencies have been recovering over the past few weeks after sputtering in May and June as regulatory pressures and bearish sentiment weighed on investor confidence. However, prices rebounded on several fundamental factors, and the recent rise in Bitcoin is supported by positive news from the mainstream investment community.
In a research note, BlackRock – the world’s largest asset manager – said it could see the price of the virtual currency reach $40,000 by the end of 2023. The fund firm, which manages more than $9 trillion in assets – more than the gross domestic product of most countries – sees an opportunity in cryptocurrencies to help diversify portfolios.
BlackRock’s initial filing in mid-June triggered a race among firms to file their ETF applications and helped trigger a broader rally across the crypto market. While many proposed ETFs are expected to face heavy scrutiny from the U.S. Securities and Exchange Commission (SEC), the BlackRock proposal appears more detailed. It aims to satisfy the regulator’s concerns over fraud and manipulation.
Specifically, the ETF would use Coinbase as its custodian and rely on spot market data for pricing. The asset manager also plans to set up a surveillance system to track customer identification and trading activity. It will also work with a third party to ensure the ETF does not buy or sell coins in bad faith.
In the meantime, Bitcoin prices remain well above their troughs and are still up more than 80% this year. A potential approval for a spot ETF would inject even more investor interest into the crypto market.
While the SEC has already approved ETFs based on Bitcoin futures, this would mark the first such fund that tracks the actual price of the currency itself. The launch of such a fund is likely to be followed by other offerings that include leveraged funds.
Meanwhile, the price of DigiByte, a Bitcoin fork backed by a Japanese crypto exchange, has jumped to a record high as traders have responded positively to recent developments. The digital asset is up almost 4% when writing to $2,800. The DigiByte/USDT chart is displaying bullish signals, and a hold above the 200-day EMA ($28,894) and S1 ($30,825) could pave the way for a move toward R1 ($31,093). A breakdown below S1 might signal a further downside for the digital token.
