King cryptocurrency reached its highest level in 17 months after the statements made by Fed Chairman Powell. Moreover, it set a new ATH level in the TRY pair. If we don’t take into account triple-digit inflation for Turkish investors, BTC losses have been wiped out since the bull season. So, how long will this rise continue?
Bitcoin Breaks Records
Recently, we saw that the price of BTC reached up to $35,582 on the Binance exchange. At the same time, a new ATH (all-time high price) above 1 million TL was set in the TRY pair. Powell’s emphasis on tight monetary policy and his comments that the 2022 hikes are starting to be felt had an impact. We mentioned that today is an important testing period. If BTC remains strong, the uptrend may continue.
The monthly closing was in a good area and Powell couldn’t push the price down. We may witness an increase in risk appetite among investors in the coming days as we don’t see an excessively hawkish tone. In the next 48 hours, we will see important data on US employment and wage increases. If these do not scare off crypto bulls, we can be sure that the bear market is finally over.
Why is Bitcoin (BTC) Rising?
We have discussed the statements made by Powell. On the other hand, there is an increasing institutional demand specifically for BTC. The volumes of options have reached record levels and optimism about ETF approval continues to grow. BlackRock and other potential ETF issuers are updating their applications. These file updates are likely a result of their ongoing communication with the SEC. The statement from the SEC also mentioned that communication with institutions is ongoing.
In previous ETF applications, the SEC would directly reject them and close the process after postponements based on price speculation. However, the current situation has evolved differently. The rejection of spot Bitcoin ETFs based on price speculation was prevented after the GBTC court decision. If the SEC continues its communication and does not find new excuses to reject the applications, there is only one option left.
Yes, it is very likely that the SEC will have to approve spot Bitcoin ETFs. If it decides to reject them, it will be a serious problem for them to face the world’s largest asset management companies, including BlackRock, in court. This explains the increasing demand and appetite for cryptocurrencies among institutional investors.
