Why Is Bitcoin Up Today?

Jake Simmons

1 year ago

3 mins read

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The Bitcoin price has risen 3.2% since yesterday’s low of $24,827. At press time, BTC was trading at $25,590 and has thus reclaimed two extremely important price levels for the moment: first, the Bitcoin price has once again risen above the 200-day Exponential Moving Average (EMA) currently at $25,299, and second, the price is now also back above the 200-week EMA at $25,304 (with the weekly close becoming of crucial importance).

As always, there are several narratives for yesterday’s rise in price. The most obvious narrative and currently the biggest topic in the market is the Bitcoin spot ETF filing by BlackRock, the world’s largest asset manager, with the US Securities and Exchange Commission (SEC). A spot ETF is seen as the holy grail that could finally open the floodgates for institutional liquidity, as Bitcoinist reported today.

Reasons For The Bitcoin Rally

BlackRock is believed to have a strong chance of getting the first spot-based Bitcoin ETF approved by the SEC due to its political influence and network. The new capital inflows made possible may have the potential to be the next bull run catalyst, according to many experts.

“BlackRock getting a BTC ETF through would be the best thing that could happen to BTC,” Galaxy Digital CEO Mike Novogratz said yesterday. Accordingly, the news is likely to have created a bullish sentiment in the market.

However, as always, several reasons play a role in the price movement on the Bitcoin market. One issue that should not be neglected is always the macro situation and the US dollar index (DXY). The latter has seen a setback in the last three days, falling from 104.70 to currently 102.21. This is likely to have favored BTC for now.

As for the macro situation, Wednesday’s interest rate decision by the US Federal Reserve (Fed) certainly still plays a role. The main story is that the market is not buying Fed Chair Jerome Powell’s hawkish stance. Analysts believe that the two more rate hikes announced in the dot plot are a feint to prevent a bullish breakout in the financial markets.

Finally, BTC’s decoupling from the S&P 500 has also been seen in recent days. Yesterday’s move could have been the start of a catch-up rally in which BTC shakes off the unnecessary losses caused by the Tether FUD and the SEC lawsuits against Coinbase and Binance US.

In addition, Bitcoin hodlers continue to show historically high conviction. As on-chain analyst Axel Adler Jr explained via Twitter, the total BTC inflow across all exchanges is currently at a low, suggesting that Bitcoin holders are in no hurry to sell their coins.

The total BTC inflow across all exchanges is currently at a low, indicating that Bitcoin owners are not in a rush to sell their coins. #Bitcoin #HODL pic.twitter.com/JTscheVcgO

— Axel 💎🙌 Adler Jr (@AxelAdlerJr) June 16, 2023

As NewsBTC reported, yesterday’s Tether FUD may also have once again marked the bottom for Bitcoin. Within the last bear market, there have already been three de-pegging events of stablecoins, all of them were marking the local bottom.

At press time, BTC changed hands for $25,590.

Bitcoin BTC price — Bitcoin price above 200-day EMA, 1-day chart | Source: BTCUSD on TradingView.com

Featured image from iStock, chart from TradingView.com

Jake Simmons

Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.

His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.

Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.

For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.

As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.

In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.

You can engage with his latest takes on Twitter: @realJakeSimmons.

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