The global cryptocurrency market has been set ablaze with Bitcoin‘s recovery to nearly $29,000 after its plunge to $24,700, following separate lawsuits by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, the world’s largest crypto exchanges. The resurgence has given rise to the question, “Why are Bitcoin and altcoins rising?” Let’s delve into this.
Why Are Bitcoin and Altcoins Rising?
The SEC’s lawsuits against Binance and Coinbase led to Bitcoin dropping to $24,700 on June 15th. Additionally, the U.S. regulator’s classification of several major altcoins, such as Solana (SOL), Cardano (ADA), Polygon (MATIC), as securities triggered a collapse in the altcoin market. However, the market quickly rebounded, led by Bitcoin, causing some to suggest that the blow dealt by the SEC was swiftly overcome.
The most significant development for Bitcoin and altcoins appears to be the substantial volume and price increase in Greyscale’s Bitcoin fund (GBTC). The price increase in GBTC has exceeded 10%, triggered initially by BlackRock, then WistomTree, and finally Invesco, these colossal asset management firms applying for a spot Bitcoin ETF. BlackRock, the world’s largest asset management firm, renowned for its ETF applications’ acceptance, played a pivotal role here.
Market participants are positioning themselves in anticipation that, if the SEC approves BlackRock’s spot Bitcoin ETF application, it will also greenlight Greyscale’s application to convert its GBTC into a Bitcoin ETF. Investors are pricing in the GBTC fund’s transformation into an ETF, indirectly driving up the price of Bitcoin.
Current Status of BTC and Altcoins
According to data from cryptocurrency data platform CoinMarketCap (CMC), Bitcoin is currently changing hands at $28,798, up 7.49% in the last 24 hours.
The altcoin market, heavily impacted by the SEC’s broadened classification of securities and the promise of future expansions, is moving slower compared to Bitcoin. Ethereum (ETH), the largest altcoin, is trading at $1,814, up 5.03% in the last 24 hours. Litecoin (LTC) stands out in CMC’s top 25 altcoin list, with a 8.95% rise.
