Grayscale Boosts Bitcoin Price as Attention Shifts to USD Impact


Grayscale, a leading crypto asset manager, 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 its eligible shares are quoted on OTCQX under the symbol GBTC.

Yesterday, Grayscale won a landmark ruling from a US court that overturned the Securities and Exchange Commission’s decision to reject its application to convert the Grayscale Bitcoin Trust into an ETF (Exchange Traded Fund). This news caused Bitcoin’s price to jump above $27k.

While the news is positive for the industry, what is more relevant for Bitcoin is what happens to the US dollar. As the federal court ruled in Grayscale’s favor, news also came out that the labor market in the US had softened. As a result, major stock market indices advanced while the dollar lost ground. This is a trend to watch in the future, as the Fed is convinced that inflation has peaked and the focus is now on the labor market.

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

If the upcoming jobs data this week confirms a soft path, Bitcoin is likely to gain additional value.

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