The price of Bitcoin has witnessed an astonishing surge, soaring by over 20% in the last seven days and breaking through the significant milestone of $30,000.
This remarkable rally has attracted widespread attention, with investors and analysts eagerly anticipating what lies ahead for BTC.
Adding to the excitement, Federal Reserve Chair Jerome Powell's recent remarks about potential interest rate increases and inflation concerns have added fuel to the discussion.
Additionally, the entrance of Valkyrie, a prominent financial firm, into the Bitcoin spot ETF market has brought more attention to the cryptocurrency's future prospects.
As Bitcoin continues its upward trajectory, the market eagerly awaits insights into its future direction and the implications of these recent developments.
Fed Chair Powell Sheds Light on Rate Increases and Inflation Outlook
In his prepared statements before the House Financial Services Committee on Wednesday, Federal Reserve Chairman Jerome Powell hinted at the possibility of further interest rate increases this year.
After implementing ten consecutive rate hikes, the Federal Open Market Committee (FOMC) agreed to halt further increases this week.
Powell emphasized that while raising rates may still be justified, it would likely occur more gradually, considering the progress made thus far.
He acknowledged that tighter lending conditions could impact economic activity, hiring, and inflation, but the extent of these effects remains uncertain.
Powell noted that inflation has somewhat moderated since the middle of last year.
However, he highlighted the persistent inflationary pressure and emphasized that bringing inflation back down to the target level of 2% will take time.
Furthermore, Powell dismissed the notion of a near-term rate cut, stating that such a move would only be appropriate if inflation significantly decreases, which he believes is unlikely to occur within the next couple of years.
Powell's acknowledgment of the persistent inflationary pressure may further fuel the appeal of Bitcoin as a store of value, enabling it to surpass the critical resistance level of $30,000.
Valkyrie Joins the Bitcoin Spot ETF Bandwagon
Valkyrie, a prominent cryptocurrency fund manager, has joined the race for a Bitcoin spot exchange-traded fund (ETF) amid the surge in institutional interest.
Following its competitors' footsteps, Valkyrie filed an S-1 registration form with the United States Securities and Exchange Commission (SEC) on June 21.
With plans for a listing on the Nasdaq under the symbol BRRR, this move has sparked significant market excitement, driving the value of BTC/USD higher.
Valkyrie, which has already made its mark in the BTC futures ETF market with the Valkyrie Bitcoin Strategy ETF (BTF) and the now-liquidated Valkyrie Balance Sheet Opportunities (VBB), also manages the Valkyrie Bitcoin Miners ETF (WGMI).
Valkyrie is committed to capitalizing on the growing demand for institutional-grade Bitcoin investment products by venturing into the Bitcoin spot ETF space.
According to Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, the renewed hope for a licensed Bitcoin spot ETF is fueling what experts call "The Great Accumulation Race" for the digital currency.
The recent applications for Bitcoin spot ETFs by BlackRock, Fidelity, Invesco, Wisdom Tree, and now Valkyrie are believed to have contributed to Bitcoin's 19% price increase since June 16, pushing it to $30,240.
Winklevoss declared on June 21 that "The Great Accumulation" of Bitcoin among institutions and retail investors has begun.
Some suggest that the window to front-run institutional demand is closing as registrations for spot Bitcoin ETFs help drive up the price of Bitcoin.
Winklevoss compared purchasing Bitcoin before the ETFs become public to buying a stock before an IPO and warned that the "floodgates" for acquiring Bitcoin are closing fast.
As the excitement around Bitcoin ETFs grows, the Crypto Fear and Greed index has risen from 49 (Neutral) to 65 (Greed) in just two days.
Meanwhile, Bitcoin is currently trading at $30,240.
In a tweet on June 21, Anthony Pompliano highlighted that Bitcoin rose from $0 to over a $1 trillion market valuation with minimal institutional engagement.
He expects that when Wall Street and BlackRock enter the market, Bitcoin will become highly illiquid as holders may be reluctant to sell to institutional buyers.
The Bitcoin ETF hype has positively impacted the largest cryptocurrency by market cap, with BTC surpassing the $30,000 mark.
Bitcoin Price Prediction
Bitcoin is experiencing a surge in trading, reaching $30,435 and recording an over 5% increase on Thursday.
The rise in Bitcoin's price to $31,000 can be attributed to the submission of a few BTC spot ETF applications.
The BTC/USD pair is exhibiting a notable bullish trend following a successful breakthrough of the $30,000 resistance level. The next target is $31,000, indicating a positive outlook for Bitcoin's price movement.
A minor correction towards the $28,900 level cannot be ruled out; maintaining a position above this crucial level would create favorable conditions for further upward momentum.
If Bitcoin sustains its position above the $30,000 mark, it will pave the way for a potential surge toward the next resistance level at $31,000.
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