Cryptos rebound, boosted by BlackRock's potential Bitcoin ETF

The cryptocurrency market rebounds. Bitcoin (BTC) rises over 2% in the last 24 hours and reaches $25,600, while Ethereum (ETH) follows in its wake and reaches $1,670. However, both cryptos have dropped more than 3% and 9%, respectively, in the last week.

All in all, Bitcoin is still far from the levels at which it has been moving in recent weeks. Craig Erlam, senior market analyst at OANDA, remarked that the break in recent sessions of "potential technical support" at $25,000 "will make a further decline below here all the more interesting." "The next area of technical support may be found around $24,000, which would almost represent of 50% correction of the 2023 rally," he added.

Despite not having regained $26,000, the market certainly seems a bit more optimistic after BlackRock's plans to create a Bitcoin ETF (exchange-traded fund) leaked. As sources familiar with the matter informed media outlet 'CoinDesk', the world's largest asset manager would use Coinbase as a cryptoasset custodian and would spot BTC.

It should be noted that, to date, the Securities and Exchange Commission (SEC), which oversees ETFs in the US, has rejected all applications to spot Bitcoin ETFs, although it has approved the trading of several Bitcoin futures ETFs.

While the news has been a breath of fresh air for the market, the climate is far from ideal following the SEC's advances on Binance and Coinbase. "The issue for crypto currently is the latest wave of negative news to hit the sector," TickMill Group stated, while adding that uncertainty has once again grown in the digital asset space.

"The correction lower in BTC has seen price trading within a corrective bear channel. Recent attempts to break back above the 27415 level have failed so far. However, while 24930 holds as support, the structure can still be viewed as a bull flag, keeping the focus on an eventual break higher towards the 32185 level," they added.

Brian D. Evans, principal at advisory firm Web3 BDE Ventures, indicated that "we’re at the beginning of a big shift involving project founders seeking locations to base themselves outside the United States." "In this sense, the market feels very dislocated. In the United States, they’re left scratching their heads over the intricacies of a regulatory system that hasn’t been updated since the Great Depression," he noted.

According to Evans, the regulatory crackdown on major companies in the space has caused projects to "seek out better-regulated jurisdictions, such as Hong Kong, Dubai and the UK."

"A global reshuffling is taking place that is shaping up to center the next burst of innovation and market exuberance in Asia and the Middle East. In that sense, then, I think the digital asset ecosystem is actually becoming more robust, making the likely fireworks following the next Bitcoin halving all the more surprising to a large number of observers. In short, the bullishness is there, yes, but it’s increasingly being driven by events happening abroad," he added.

In other market news, there have been notable rises in some of the major altcoins. Cardano (ADA) and Dogecoin (DOGE) gain 3%, while litecoin (LTC) increases 4%.