Bitcoin has been hit hard by recent negative events and statements and has experienced declines.
So much so that BTC, which went up to $ 31,000 in April, retreated by about 16%. BTC, which saw below $ 25,000, rose above $ 26,000 with the rise experienced over the weekend.
While technical indicators show a bullish signal in Bitcoin, analysts speaking to Coindesk stated that some developments may lead to a bull path in BTC.
Crypto intelligence firm Jarvis Labs, who first studied the relationship between DXY and Bitcoin, said that the drop in the dollar is good for BTC.
“DXY also fell last week, experiencing its third weekly loss in a row. Any drop in the dollar is good for Bitcoin.
Therefore, BTC and risk assets experienced the strongest bull runs in DXY bear markets.
Also, DXY's days above 100 seem numbered, as the FED did not raise interest rates this month."
Secondly, CF Benchmark analyst Ken Odeluga, stating that the spot Bitcoin ETF application of BlackRock, the world's largest asset management company, created a positive atmosphere for the market, said that this application gave a positive surprise to the market, which has been battered by the constant flow of bad news in the last 12 months.
“This filing shows that the institutional appetite for Bitcoin-based products remains strong after the dire bear market we experienced in 2022.
BlackRock's ETF filing is a very welcome positive development and puts further pressure on the SEC to clarify its crypto stance."
Third, Matt Hu, the CEO of crypto asset management company Blofin, pointed out that Bitcoin is not among the tokens that the SEC qualifies as securities, adding that this situation causes investors to see BTC as a safer haven.
“The SEC has sued leading crypto exchanges Binance and Coinbase. While the lawsuits alleged that many altcoins are securities, it did not mention Bitcoin and Ethereum (ETH).
Regulatory risk is mainly focused on altcoin investors, with limited impact on BTC and ETH holders.
But if the SEC succeeds in its lawsuit, all altcoins can be considered securities and need to be regulated according to securities standards.
This means that altcoin trading will be decentralized. Also, if this happens, liquidity will be more concentrated in BTC.”
*Not investment advice.