Key Takeaways
- Bitcoin has gained sudden popularity due to corporate emergence in the industry
- Technological advances are speeding up the process
- Prices are expected to soar and supply is expected to shrink in the upcoming period
The Bitcoin market has been hit with a staggering amount of news in June. It’s interesting to see how the news affected Bitcoin prices in real-time.
At first, Bitcoin, during the first two weeks of June, saw a slight drop due to the news regarding Binance, the world’s biggest exchange, facing lawsuits filed by the SEC. The second biggest exchange, Coinbase, was also on the receiving end of the SEC’s wrath against the crypto market.
However, in the third week, the tides went the other way. It all started when Blackrock, the world’s biggest asset management firm, officially applied for a spot Bitcoin trading ETF, signaling big money entering the market.
Simultaneously, Binance, the same exchange mentioned above, announced integrating the Bitcoin Lightning Network, a technology that promises faster and cheaper transactions. Less than two days later, a new crypto exchange emerged under the name of EDX Markets. The news of its emergence would’ve gone by unnoticed hadn’t its backing come from some of the world’s biggest corporations.
The logical question is: Why Bitcoin especially? And how long should we expect this rising interest in Bitcoin to continue?
Bitcoin Go Brrr
Following the negative news above, Bitcoin saw a slight drop from ~$26,000 to ~$25,000 in the first couple of weeks.
Understandably, the market reacted negatively to the news of the world’s biggest exchange potentially going under due to legal challenges, with its first alternative possibly facing the same fate. Binance even had to halt all USD transactions as a result of the SEC’s attack, along with a suspension of all Over The Counter trades.
Then, the news broke out about Blackrock applying for that ETF. To put things into perspective, Blackrock manages assets worth over $9 trillion with a portfolio that includes shares in companies such as Spotify and Uber.
Ever since, several investment and asset management companies expressed interest in the Bitcoin market. Fidelity, the world’s third-largest asset management firm was rumored to either apply for its own ETF and/or takeover a digital management firm called Grayscale.
Fidelity was instead brought up in the announcement regarding the launch of EDX Markets, the new crypto exchange to look out for. Fidelity is joined by Charles Schwab and Citadel Securities in backing the new crypto exchange.
EDXM, however, is planning on only allowing trades of Bitcoin, LiteCoin, Bitcoin Cash, and Ethereum, which are the only cryptocurrencies the SEC doesn’t mind being traded by these companies.
Even more interestingly, Valkyrie, a financial services company with assets managed worth over $80 billion, has filed for Valkyrie Bitcoin Fund (BRRR) with the SEC. The idea is to bridge the old financial system, Traditional Finance (TradFi), and the new one, Decentralized Finance (DeFi). As a result, by investing money into Valkyrie, investors are staking their funds on Bitcoin managed by the financial institution.
Higher Demand, Lower Supply
Knowing that Bitcoin is bound to increase in value following all the news above, the demand for its purchase caused a higher-than-usual outflow. Some trading prices spotted included $30,000, $31,000, $32,000, and even $40,000.
A similar outflow occurred during the first couple of weeks in June, but that’s because some hodlers were panic selling, fearing a slump in value.
Whether this rising value trend will continue is technically anyone’s guess. However, all signs show a consistently increasing interest in the market, especially from the corporate side.
Corporations such as Blackrock, Fidelity, and Valkyrie would naturally want to get their hands on the biggest sum of Bitcoin possible, enabling themselves to control market prices and flow.
With only a limited amount of Bitcoin available, the supply of the cryptocurrency is bound to shrink significantly in the upcoming period, causing its price to soar.
Omar is a journalist with a passion for unraveling the intricacies of emerging technologies. With a keen interest in AI, blockchains, cryptocurrencies and machine learning, he is fully immersed in the tech industry.
Having covered news in North America, South America, Europe and Asia, Omar stands out for his ability to describe the future of humanity using current technologies through the art of storytelling. Whether he's delving into the potential of AI to revolutionize industries or exploring the transformative power of blockchain in reshaping economies, Omar aims to captivate readers, seamlessly blending technology, economics and politics. Omar's global perspective fuels his ability to connect the dots and paint a vivid picture of the ever-evolving tech landscape.
