Bitcoin jumps to $30k on fake BTC ETF news. The spike was quickly reversed.

Bitcoin jumps to $30k on news of fake BTC ETF momentum quickly reverses BTC ETF likely to exist

Bitcoin is one of the assets that posted gains against the US dollar in 2023. In fact, the price of Bitcoin started the year with a bang, rising from $15k to $30k.

Fast forward to mid-October, and Bitcoin is trading, more or less, near annual highs.

The same cannot be said about the US dollar.

In fact, the green background is reinforced on the FX dashboard, which is gaining ground against its traditional peers. For example, EUR/USD traded above 1.12 in 2023, only to trade near 1.05 now. A drop of seven big figures (ie, seven hundred pips) for the most popular and liquid pair speaks volumes about the dollar's strength.

However, such strength did not affect Bitcoin. It's just the opposite.

Yesterday, Bitcoin tested the $30k level (again). The move comes on the heels of the SEC (Securities and Exchange Commission) hitting the wire to approve BlackRock's Bitcoin ETF.

It turned out to be a false alarm, but the price of Bitcoin skyrocketed. However, much of the movement was reversed by the end of the trading day.

And that's what makes it fun.

Bitcoin Chart by TradingView

BTC ETF is almost certain.

While much of yesterday's action has been retraced, Bitcoin's price remains near annual highs. Although one of the reasons was unknown yesterday, the BTC ETF is almost certain.

Late last Friday, the SEC announced it would not appeal the Grayscale court's decision. Effectively, it means that the probability of BTC ETF being approved is very high. So, if markets are bullish, the news should be priced in early, explaining why Bitcoin will trade at highs in 2023, as the dollar strengthens against everything else.