Here’s why Shiba Inu, Zcash, Monero, Kava prices just rallied

Cryptocurrency prices had a strong performance during the weekend. Bitcoin price jumped above $26,000, a strong comeback after falling to $24,500 last week. As a result, the total market cap of all cryptocurrencies jumped to over $1.07 trillion. Other altcoins like Shiba Inu, Zcash, Monero, and Kava also jumped sharply.

Blackrock’s Bitcoin ETF filing

Altcoins like SHIB, Zcash, Monero, and KAVA jumped during the weekend because of some important crypto news that came out on Friday. These reports helped to offset the somber mood in the crypto industry after the SEC filed lawsuits against Coinbase and Binance.

Blackrock, the giant asset manager, filed for a new Bitcoin spot ETF that will give investors an exposure to the biggest cryptocurrency in the world. This ETF will make it possible for investors to take advantage of price movements in BTC without explicitly buying the underlying asset.

The iShares Bitcoin Trust will be different from the existing Bitcoin Strategy ETF (BITO), which has been in existence for a while. BITO primarily invests in Bitcoin futures and does not have Bitcoin in its reserves. BITO is also an expensive fund with an expense ratio of 0.95%.

The report was important because of the special role that Blackrock plays in the financial market, where it has almost $10 trillion in assets under management (AUM). It is also one of the most influential companies in the world. As such, there is a likelihood that the company will succeed where other ETF providers failed.

Another notable factor is that Blackrock will use Coinbase for its custody purposes. As such, investors will watch out whether the SEC will allow the deal to go on since it is in a legal challenge with Coinbase.

In case you were wondering:

The longest the SEC can go before approving or denying Blackrock’s BTC ETF is March of 2024.

The #BTC halving is scheduled for April.

— The ₿itcoin Therapist (@TheBTCTherapist) June 17, 2023

Why altcoins rallied

Therefore, altcoins rallied during the weekend for three main reasons. First, investors took the Blackrock announcement as a positive thing for the crypto industry. This was notable since it came at a time when cryptocurrencies are subdued by the actions on the SEC.

Second, historically, altcoins tend to do well when there are some positive news. That’s because Bitcoin has a positive correlation with other altcoins.

Finally, investors are buying the dip since most cryptocurrencies were in their extremely oversold levels following the SEC lawsuits.

It is worth noting that this rebound could be part of a dead cat bounce, which is a temporary rally that happens during a bearish trend.

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