- Bitcoin is trading above $30,000 even as the dollar rises against other fiat currencies
- The News That BlackRock Is Preparing To Launch A Spot Bitcoin ETF Has Helped
- SEC litigation creates uncertainty
Bitcoin is trading at a one-year high after breaking out of what looks like a bullish flag pattern. As such, cryptocurrencies hit new highs and maintain a bullish bias despite continued price consolidation since April.
It is difficult to place a bearish bet on Bitcoin while it is trading above $30,000. This is especially true when you look at what happened in traditional currency markets where the US dollar has risen across the board.
For example, the EUR/USD exchange rate fell from 1.10 to 1.0850 on news that the European PMI was worse than expected by the market. GBP/USD also fell on weak UK data.
Overall, the dollar rose last week, but not against Bitcoin.
just against.
What is driving the price of Bitcoin higher?
It is now clear that the weaker dollar did not cause the rally. So something else must be the cause of this bullish breakout.
There are two possible explanations.
One is associated with BlackRock, the world’s largest American multinational investment company. News has surfaced that the company has submitted an application for a spot Bitcoin ETF designed to track the underlying market price of Bitcoin. So some argue that BlackRock knew something beforehand.
Second, recent SEC lawsuits have increased investor confidence in the industry. Increased transparency in the industry should benefit crypto investors.
Regardless of the reason, Bitcoin is trading above $30,000 due to the dollar’s strength against other fiat currencies. Bitcoin may have more upside if the divergence continues.
Conversely, no one knows how the cryptocurrency market will react to the Binance and Coinbase rulings.
