Bitcoin rallies have a way of sparking calls and speculation about what’s next. The cryptocurrency’s recent resurgence is no exception.
With the largest digital currency finally breaking through $85,000 to briefly trade above $88,000 — the highest levels in several weeks — ETFs such as the CoinShares Valkyrie Bitcoin Fund (BRRR ) are going along for the ride as HODLers and trades speculate as to what important price points are next on bitcoin’s agenda.
Not surprisingly, the ballyhooed, psychologically important $100,000 is a point of emphasis. Bitcoin made its initial ascent to $100,000 in December, but hasn’t been there in several months. In what would be good news for ETFs such as BRRR, some experts and cryptomarket observers believe it’s just a matter of time before bitcoin returns to $100,000 prior to notching a significant rally from there.
With BRRR, Get While the Getting Is Good
One of the emerging favorable catalysts for bitcoin is that it’s decopupling from the U.S. dollar. That is to say the cryptocurrency is surging as the greenback fades. That scenario could extend as market participants digest headlines regarding President Trump potentially pushing Federal Reserve Chair Jerome Powell out. That news is dragging down on the dollar.
“There is also a policy curveball in play. Reports are swirling about potential Fed leadership changes and growing White House involvement in central bank decisions. The dollar index dropped to a three-year low, and with over $5 trillion erased from U.S. equities this month, investor sentiment is tilting,” reported Gamza Khanzadaev for U Today.
Count BitMEX co-founder Arthur Hayes among those who believe bitcoin could soon revisit $100,000 and when it does, that could represent the new low for the king of digital currencies. In a recent post on X (formerly Twitter), Hayes said this may be the last chance market participants have to buy bitcoin below $100,000.
A Case for More Near-Term Upside
With the U.S. Dollar Index residing at its lowest levels in 37 months, there is a case for more near-term upside for bitcoin and funds like BRRR. However, some analysts argue that $91,000 is the next important technical level that needs to be conquered before a return to six figures can be addressed. This week could bring the catalysts and/or tests BRRR and crypto investors have been waiting for.
“Markets are awaiting statements this week from eight officials at the U.S. Federal Reserve, amidst increasing political pressure, including calls from President Donald Trump to oust Federal Reserve Chair Jerome Powell. Market forecasts indicate a possible interest rate cut in June, a scenario that could weaken the dollar and enhance the appeal of high-risk assets, primarily Bitcoin,” according to Arabic Trader.
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