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Analysts have shared their commentary on the recent surge of Bitcoin above $27,000, attributing the bullish behavior to the numerous spot Bitcoin exchange-traded fund (ETF) applications, including those from BlackRock and ARK Invest.
Regulatory Impact!
Expectations also rise around Grayscale’s Bitcoin Trust (GBTC), potentially converting into a Bitcoin ETF. Bitcoin bears might take advantage of macroeconomic and regulatory headwinds, including exchanges implementing mandatory Know Your Customer (KYC) procedures.
On June 28, KuCoin announced an upcoming KYC system upgrade to enhance compliance with global Anti-Money Laundering regulations. Additionally, there’s growing concern about the impact of miners’ selling pressure as the network’s hashrate reaches 400 exahashes per second.
The analytics firm Glassnode pointed out that miners sent a record percentage of BTC earnings to exchanges last week, totaling $128 million. Interestingly, this movement may mirror sudden surges seen during the 2021 bull run as miners make a profit.
Fed Expectations!
At the European Central Bank forum held in Portugal, Federal Reserve (Fed) Chairman Jerome Powell cautioned that most policymakers are expecting two more interest rate hikes this year. According to the CME FedWatch Tool, investors are pricing in an 82% likelihood of a 25-basis-point rate hike on July 26.
Bitcoin’s price last neared the $27,000 level on June 27. However, the resistance was stronger than expected. The subsequent correction to $30,000 supports the short-term sideways trading thesis as investors assess the impacts of additional Fed rate hikes. Such a restrictive scenario for the global economy might explain why some Bitcoin investors decided to cap the upward price with profit-taking.
Open positions for the June 30 options expiration are $4.7 billion, but the actual figure will be lower as bulls expect price levels of $32,000 or higher. After testing the $31,000 resistance following a 25.5% rise between June 15 and June 23, analysts have become overly optimistic about Bitcoin’s price.
