For bitcoin holders, the last 8 months have not been easy. After one historic fall to less than 17,000 dollars in November 2022 (caused in particular by the resounding bankruptcy of FTX), the value of the first crypto-currency in history has not stopped climbing since January, to surpass $24,000 in February. After a peak at $31,000 in Aprilshe just dived below 27000. A bad omen for BTC holders? It seems not, because the news on the markets suggest an almost certain future increase. Explanations
A weaker dollar, a stronger bitcoin
In any case, this is demonstrated by Michael Van de Poppe in his article “Bitcoin vs. USD: why only a weaker dollar will push BTC above $20,000” appeared in Cointelegraph. There is an inverse correlation between these two financial assets. Bulk, the stronger the dollar, the weaker bitcoinand vice versa.
However, the latest macroeconomic news shows that the dollar will not rise for the next few months. The US currency index fell 1.2% last week, its third consecutive weekly decline.
The reason? The FED (US Federal Reserve) halted a 15-month policy rate hike cycle. It must be said that the latest increase has highlighted the fragility of the American banking sector, with in particular the bankruptcies of Silicon Valley Bank and Signature Bank. The downtrend of the dollar is inevitable, bitcoin can take advantage of it.
BlackRock’s shock announcement
Another good news for bitcoin lovers, BlackRockthe largest asset manager in the world, filed a request with the SEC, the stock market watchdog in the United States, on June 15, creating a bitcoin ETF.
As a reminder, ETFs (Exchange traded funds) are financial products backed by the value of an index. After those of the main financial markets of the planet, this one will concern the first crypto in history. According to leading analysts, this will lead to a continued rise in BTC in the coming months.
Bitcoin, a safe haven?
In April 2023, the SEC launched lawsuits against the 2 crypto giants, Binance and Coinbase. And the few days following this announcement have marked another sharp rise (after the one initiated in January) bitcoin price. The reason? First of all, BTC as a financial asset remained out of SEC grievances. Regulatory risk has only been on altcoin holders. It seems that the latter have fallen back on BTC and ETH, for the sake of protecting their assets.
It therefore seems that the bitcoin has become a safe havenin the same way as gold or the dollar until the beginning of the 70s. This confidence of the financial world which increases day by day, the dollar which is doomed to fall, Blackrock which enters the game… It indeed seems that bitcoin has a bright future ahead of it.
Sources: Cointelegraph, Coindesk, Reuters