Smoke And Mirrors Or Is Bitcoin Officially Back?!

Over the past two weeks, Bitcoin (CRYPTO: BTC) and, frankly, the crypto market as a whole have been on the rise. In fact, Bitcoin is currently trading at the highs of the year while the stock market is free-falling. This is the divergence all crypto enthusiast dreamed of, but will their dreams come true, or is this rally built off overzealous FOMO?

Let’s start with what sparked the rally a couple of weeks ago when the infamous BlackRock’s spot BTC ETF was said to be released in the near future. The initial news caused a spike of over 10%, and as traders of the digital asset digested the news, it did not fade but instead traded sideways for a few days. Then, suddenly it was listed on the Depository Trust and Clearing Corporation’s (DTCC) website. Unsurprisingly, in typical cryptocurrency fashion, BTC rallied another 20%+ off this news alone. Even after it was removed from the website, the price has held and has not shown any real signs of weakening. From a fundamental aspect, this could very well be a sell-the-news situation once the ETF is officially released. Even though it has not been able to diverge from the financial markets since its inception successfully, maybe this is its time to do just that.