3 reasons why BTC rose to $ 29,000 and can it continue to increase?

3 reasons why BTC rose to $ 29,000 and can it continue to increase?

The price of Bitcoin has increased by over 7 % in the last 24 hours - a step that led to a flood of liquidations, most of which were expected to be at short notice.

Why is Bitcoin's price increasing? Well, here are a few possible reasons.

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Blackrock has applied for a Bitcoin ETF

Blackrock is the world's largest asset manager and has taken a big step forward to legitimize Bitcoin as an investment class.

The company applied for a Spot-Bitcoin-Exchange Traded Fund (ETF).

Even if it sounds like an old story, there is a worthwhile difference between Blackrock and all other companies that have previously applied for a spot bitcoin ETF. The former has an ETF success rate at the Sec 575 to 1.

That is right. Blackrock submitted 576 applications and only one of them was rejected. And that was almost a decade.

It is not necessary to mention that an approved Bitcoin-Spot-ETF will have a significant impact on the entire industry, since it would legitimize the asset and enable institutional investors to get involved without the underlying concerns with which they are currently confronted.

It seems that the market finally understood the news and reacted as most expected.

more Bitcoin ETF applications

The above has given other large companies wings to renew their efforts or to start all over again. Wisdomtree-a global financial company-again tries to start a spot bitcoin ETF in the USA. The submission came yesterday.

Investco-another investment administration company with an managed assets of around $ 1.4 trillion-also applied for a Spot BTC ETF again. The company first submitted an application to the Sec in 2021 together with Galaxy Digital.

It seems that Blackrock's application has aroused great hopes thanks to the call, the stature and size of the company that the application will be accepted.

The crypto exchange Edx supported by Wall Street goes online

A cryptocurrency exchange called Edx, which is supported by Charles Schwab, Citadel Securities and Fidelity Digital Assets, was started yesterday and officially started trading.

It is interesting to determine that the stock exchange enables the trade with selected cryptocurrencies such as BTC, ETH, LTC and BCH-none of them have been described in the recent complaint that the Securities and Exchange Commission of the USA against coinbase and coin base has submitted as a "crypto-asset value papers".

can the BTC Prize increase?

In her latest Bitfinex Alpha report, analysts of the popular stock exchange pointed out the resistance of the cryptoma market in view of the continuing regulatory turbulence in the USA.

However, they also argued that despite the clear upward movement, the price had not succeeded in triggering a short squeeze.

The quick recovery of Bitcoin last week from the significant $ 25,000 mark did not trigger a Short Squeeze, which indicates that the price increase was not a consequence of short liquidations, but possibly the result of extensive Futures-Long positions that held the price.

For those who do not know: a short squeeze arises when there is a cascade-like liquidation wave of short positions. If a short position is liquidated, it is forced to close. In order to close a short position, a corresponding purchase order must be available. Therefore, if many short positions are liquidated at once, this practices a considerable upward pressure to the price, which leads to a quick increase. Conversely, a long squeeze causes the opposite.

Bitfinex argues that the market has not yet experienced this, which leaves the door open for speculation that if the bull succeeds in continuing to drive up the price, this could finally trigger a short liquidation cascade that catapults the price.

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