Why Bitcoin rose in price and what will happen next

Our experts talked about the causes of growth in the price of Bitcoin and how it will behave in the near future

Between June 15 and June 22, 2023, the most capitalized cryptocurrency, Bitcoin (BTC), went up nearly 24%. The coin crossed the local maximum, which was fixed on April 14, 2023 at the level of $30,958.

Bitcoin, followed by the whole market of digital assets, went up on the background of a number of positive news. Our experts believe that the driver could be the renewed race by major corporations for the right to obtain permission. This will make it possible to launch the first Bitcoin-based spot exchange traded fund (ETF) in the U.S. market and the interest of large companies in cryptocurrencies.

On June 15, it became known that BlackRock, a major investment firm, filed an application with the SEC to launch a bitcoin trust. This company’s initiative, if approved, could simplify institutional access to the crypto industry, our experts say.

On June 20, Deutsche Bank, one of Germany’s largest financial conglomerates, announced its intention to provide cryptocurrency services. In parallel, Wall Street giants Citadel, Fidelity and Charles Schwab launched their own decentralized crypto exchange. On June 21, one of the world’s largest investment firms, Invesco, applied to launch a spot Bitcoin ETF. All this news had a positive impact on cryptocurrency rates.

Major companies enter cryptoindustry

Interestingly, large companies enter the crypto industry despite the fact that it is under pressure from the U.S. Securities and Exchange Commission (SEC).

It is noteworthy that not only members of the crypto community do not approve of the SEC’s actions. But also representatives of the authorities. For example, Warren Davidson, a member of the House Committee on Financial Services, suggested that the current head of the regulator, Gary Gensler, should be fired.

Also after this news was the statement of the head of FRS Jerome Powell about the need to connect the Federal Reserve to regulate the stablecoin market. Which he called “a form of money” rather than securities.

Powell’s hints about the possibility of further rate hikes should also not be forgotten. Since the U.S. inflation target has not yet been reached. And rate changes could put pressure on the stock market, followed by the movements of cryptocurrencies.

To summarize the intermediate results, active market growth was realized amid unprecedented pressure from U.S. regulators on the crypto industry. The interest of large corporations in cryptocurrencies in the current market conditions looks suspicious.

Possible further growth

In order to expect further growth, for example, to the levels of $40 thousand and $45 thousand. It is necessary for the price to fix above the maximums of April in the nearest days.

Our experts expect further growth of BTC price this year. A lot of fundamental factors point to it. But it’s hard to say for sure whether the growth of recent days is the movement that will lead the price to further significant growth.

It is possible that the slight sideways dynamics, observed over the last couple of months, will continue on BTC for a while longer.