Bitcoin experienced a significant jump to $30k recently, fueled by fake news surrounding the approval of a Bitcoin ETF by the SEC. However, this spike was short-lived and quickly reversed. Despite this, there is still a high probability that a Bitcoin ETF will be approved in the near future.
In 2023, Bitcoin has proven to be one of the few assets that has maintained its gains against the US dollar. Starting the year on a bullish note, Bitcoin’s price soared from around $15k to surpass $30k. As we approach mid-October, Bitcoin continues to trade near its yearly highs.
On the other hand, the US dollar has displayed strength against traditional currencies. For instance, the EUR/USD pair traded above 1.12 in 2023, but it has now dropped to close to 1.05. This significant seven hundred pips decline in one of the most popular currency pairs highlights the strength of the US dollar.
Interestingly, this strength in the US dollar did not impact Bitcoin. Instead, Bitcoin experienced a surge to $30k following news that the SEC approved a Bitcoin ETF by Blackrock. However, it was later revealed that this news was false, leading to a retracement of most of the price move by the end of the trading day.
Despite the fake news, Bitcoin’s price remains near its yearly highs. This is mainly due to the expectation that a BTC ETF will eventually be approved, even though it was not announced on the day of the fake news. The SEC recently announced that it would not appeal the Grayscale court ruling, which implies a high likelihood of a BTC ETF approval. Therefore, the anticipation of this approval may already be factored into the current price, explaining why Bitcoin continues to trade near its 2023 highs despite the US dollar’s strength against other currencies.
In conclusion, while Bitcoin experienced a temporary spike to $30k on the back of fake news about a BTC ETF approval, the price quickly reversed. However, the expectation remains high that a BTC ETF will be approved in the future. This anticipation may be a contributing factor to Bitcoin’s sustained high price despite the strength of the US dollar.