Since the beginning of June, the cryptocurrency market has experienced ups and downs. First, a series of regulatory blows from the U.S. Securities and Exchange Commission (SEC) have made it difficult for cryptocurrency companies to breathe. The SEC sued the two leading cryptocurrency exchanges, Binance and Coinbase, which brought the market's confidence and enthusiasm to a freezing point. The price of Bitcoin was also affected and plummeted to US$24,800 at one point.
In addition, the SEC’s indiscriminate attack of labeling “67 cryptocurrencies” as securities caused the price of competing coins to collapse across the board on June 10. The SEC named securities coins and caused a flash drop of at least 20%. The market panicked that no market makers would dare to endorse and provide liquidity for competing coins in the future. Due to various factors, the market was pessimistic about the subsequent trend in mid-June.
Bitcoin blows the horn of counterattack
MicroStrategy co-founder Michael Saylor predicted in a June 14 Bloomberg interview that despite the regulators’ actions, this will be beneficial to the future development of Bitcoin.
Unexpectedly, the market has really undergone tremendous changes. After the asset management giant BlackRock proactively applied for the Bitcoin spot ETF "iShares Bitcoin Trust" in mid-June, the price of Bitcoin reversed and the market instantly turned from bearish sentiment to bullish.
With BlackRock taking the lead, traditional financial institutions have continuously made the same application requirements, including Wall Street asset management companies Wisdom Tree and Invesco, and asset management giant Fidelity is also reported to be planning to apply. Crypto fund Valkyrie also seized the opportunity to submit an application to the US SEC again. The price of Bitcoin has since begun to soar.
Due to the news of the entry of Wall Street giants, the market has regained its enthusiasm and interest in cryptocurrencies. The price of Bitcoin broke through US$31,000 last night and once approached US$31,500, setting a new high in nearly a year. The increase has been as high as 25% since mid-June, and the increase since the beginning of the year has exceeded 80%.
Bitcoin's market capitalization of the overall cryptocurrency market has also recently soared to over 50%, hitting a new high in more than two years, confirming that this wave of growth is indeed driven by Bitcoin.
