Bitcoin jumps on Grayscale news, but what happens with the USD is more important

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  • Grayscale won a landmark ruling against US regulators
  • The SEC was wrong to reject Grayscale’s application to transform the Bitcoin trust into an ETF
  • Bitcoin’s price jumped, but it is more relevant what happens to the US dollar next

Grayscale is a leading crypto asset manager. It enables traders and investors to gain exposure to the cryptocurrency market through a Bitcoin trust.

The trust now has over $17 billion in assets under management, and the eligible shares of Grayscale Bitcoin Trust are quoted on OTCQX under the symbol GBTC.

Yesterday, Grayscale won a landmark decision from a US court that ruled against the Securities and Exchange Commission over Grayscale’s Bitcoin ETF.

Grayscale wants to convert the Grayscale Bitcoin Trust into an ETF (Exchange Traded Fund), but the SEC did not allow it. However, the federal court ruled that the SEC was wrong.

As a result, Bitcoin price jumped above $27k. While Grayscale’s news is positive for the industry, for Bitcoin, it is more relevant what happens to the US dollar.

Bitcoin chart by TradingView

Bitcoin bounces from support as the US dollar weakens

At the same time, when the US federal court ruled in favor of Grayscale, news came out that the labor market in the United States softened. Major stock market indices advanced as the dollar lost ground.

This is a trend to watch in the future.

Because the Fed is convinced that inflation has peaked, the focus sits now on the labor market. If jobs data this week confirms the soft path, expect Bitcoin to gain some more.

From a technical standpoint, Bitcoin bounced from horizontal support given by the neckline of an inversed head and shoulders pattern. The neckline is often retested, and now the focus shifts (again) to the measured move that points to $35k and beyond.

The post Bitcoin jumps on Grayscale news, but what happens with the USD is more important appeared first on CoinJournal.

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