- Bitcoin trades above $30k despite the dollar strengthening against other fiat currencies
- News that BlackRock prepares to launch a spot Bitcoin ETF helped
- SEC’s lawsuits create uncertainty
Bitcoin trades at a 1-year high after breaking out of a consolidation that looks like a bullish flag pattern. As such, the cryptocurrency has made a new higher high, keeping the bullish bias intact despite consolidating since April.&
While trading above $30k it is hard to make a bearish bet on Bitcoin. That is specifically true if looking at what happened in the traditional currency market, where the US dollar strengthened across the board.&
For example, the EUR/USD exchange rate dropped from 1.10 to 1.0850 on news that the European PMIs weakened more than the market expected. Also, the GBP/USD dropped on weak UK data.&
All in all, the dollar strengthened last week, but it did not gain against Bitcoin.&
Just the opposite.&
What drives the Bitcoin price higher?&
By now, it is obvious that the dollar’s weakness did not drive the move higher. Therefore, something else must be the cause of this bullish breakout.&
Two possible explanations exist.&
One is related to BlackRock, the American multinational investment company, one of the largest in the world. News surfaced that the company submitted an application for a spot Bitcoin ETF designed to track the underlying market price of Bitcoin. Therefore, some argue that BlackRock might know something in advance.&
Another is that investors’ trust in the industry builds up with the recent SEC lawsuits. A more transparent industry should be a positive for crypto investors.&
Regardless of the reason, Bitcoin trades above $30k on the dollar’s strength against other fiat currencies. If the divergence continues, Bitcoin might have more upside.&
On the flip side, no one knows how the cryptocurrency market will react to the Binance and Coinbase verdicts.&
The post Should you buy Bitcoin as it jumps to a 1-year high? appeared first on CoinJournal.
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