Steadily and somewhat quietly, the world’s biggest cryptocurrency, is clawing upward.
Cboe’s Bitcoin futures (@XBT) traded as high as 8390 this morning, a level last seen on May 22. They’re up more than 30 percent in the last month.
The rally has followed a report on June 27 that the U.S. Securities and Exchange Commission is seeking comments on a Bitcoin exchange-traded fund. That potentially raises hopes that regulators would reverse earlier prohibitions against such an instrument. If it were allowed, the result could be a potentially much wider base of buyers for the cryptocurrency.
There might be some technical catalysts as well. For example, @XBT has formed an inverse head-and-shoulders reversal pattern and seems to be breaking a downward trendline. (See chart below.) Seasonality may also favor the bulls because Bitcoin rose between July and December over the last three years.
One final note: The buyers are focused almost entirely on Bitcoin, with altcoins lagging. However this morning other tokens like Ethereum (ETHUSD), Bitcoin cash (BCHUSD) and Litecoin (LTCUSD) seem to be catching up.