Do you have to purchase Bitcoin because it jumps to a 1-year excessive?

• Bitcoin trades above $30k regardless of the greenback strengthening in opposition to different fiat currencies
• Information that BlackRock prepares to launch a spot Bitcoin ETF helped
• SEC’s lawsuits create uncertainty

Bitcoin trades at a 1-year excessive after breaking out of a consolidation that appears like a bullish flag sample. As such, the cryptocurrency has made a brand new increased excessive, conserving the bullish bias intact regardless of consolidating since April. 

Whereas buying and selling above $30k it’s arduous to make a bearish wager on Bitcoin. That’s particularly true if taking a look at what occurred within the conventional forex market, the place the US greenback strengthened throughout the board. 

For instance, the EUR/USD trade fee dropped from 1.10 to 1.0850 on information that the European PMIs weakened greater than the market anticipated. Additionally, the GBP/USD dropped on weak UK knowledge. 

All in all, the greenback strengthened final week, but it surely didn’t acquire in opposition to Bitcoin. 

Simply the other. 

Bitcoin chart by TradingView

What drives the Bitcoin value increased? 

By now, it’s apparent that the greenback’s weak point didn’t drive the transfer increased. Due to this fact, one thing else should be the reason for this bullish breakout. 

Two attainable explanations exist. 

One is said to BlackRock, the American multinational funding firm, one of many largest on the planet. Information surfaced that the corporate submitted an software for a spot Bitcoin ETF designed to trace the underlying market value of Bitcoin. Due to this fact, some argue that BlackRock would possibly know one thing upfront. 

One other is that traders’ belief within the trade builds up with the current SEC lawsuits. A extra clear trade must be a optimistic for crypto traders. 

Whatever the purpose, Bitcoin trades above $30k on the greenback’s power in opposition to different fiat currencies. If the divergence continues, Bitcoin might need extra upside. 

On the flip facet, nobody is aware of how the cryptocurrency market will react to the Binance and Coinbase verdicts. 

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