Bitcoin Eyes $30K as UK Vaccine Approval Boosts Risk Appetite

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Bitcoin once again secured record highs on Wednesday, aided by news of Anthony Scaramucci’s investment in SkyBridge Capital in the cryptocurrency space.

The benchmark cryptocurrency traded at $ 28,580 during the morning Asian session after investment management firm reportedly bought Bitcoin worth $ 182 million. The news soon followed a dramatic influx of stable coins into the cryptocurrency exchanges, indicating the willingness of traders to “buy the news.”

Bitcoin price compared to the stable Bitcoin inflow on the exchanges. Source: CryptoQuant

Vaccine, profit taking

Even so, the BTC / USD exchange rate has reversed its rate sharply due to the profit-taking of day traders. The pair stayed in negative territory throughout the European session, falling to $ 27,311 at the start of trading.

Bitcoin is finding support on the 20-period MA curve near $ 27,000. Source: BTCUSD on TradingView.com

One reason could be the UK approval of the COVID-19 vaccine developed by AstraZeneca and Oxford University.

Hani Redha, Multi-Asset Portfolio Manager at PineBridge Investments, described this as an “important development” in the global fight against the pandemic. In contrast to its colleagues, the AstraZeneca-Oxford vaccine will have more doses that will have to be transmitted against comparatively higher temperatures in developing countries.

“The sheer number of doses and the fact that distribution is easier, especially in developing countries, makes it important,” he noted.

Investors used the vaccine news as an opportunity to add short-term exposure to risky markets. The pan-European Stoxx 600 index rose 0.11 percent, while the FTSE 100 index on the London Stock Exchange saw a modest increase of 0.1 percent.

Bitcoin, on the other hand, appeared to be broke.

Bitcoin ramped up to $ 30,000

Meanwhile, a weaker dollar capped Bitcoin’s retrospective losses in a thin trading session.

The US dollar index, which measures the strength of the greenback against a range of foreign currencies, fell to its lowest level since April 2018. While the vaccine news worried Bitcoin traders, a weakening dollar secured its medium-term bullish bias for the cryptocurrency .

Investors see Bitcoin as a hedge against inflation and current devaluation. The US dollar is now a global reserve asset, down more than 12 percent from its mid-March high. Its slump came after massive debt reserves from the Federal Reserve and two US government stimulus packages totaling more than $ 3 trillion.

#bitcoin = 15 ounces of gold. From 5 ounces in late 2019 and 3 ounces in 2018. Note that this formula or table does not include USD. This is the pure S2F effect without QE / Brrr. 100x gold implies Bitcoin worth $ 188,000 (at current gold prices; gold is likely to rise in price due to the QE). pic.twitter.com/5uXZVs0Rnr

– PlanB (@ $ 100 trillion) December 30, 2020

At the start of the US session, anti-fiat sentiment could spark further upside moves for Bitcoin’s sustained uptrend. A pseudonymous analyst believes the cryptocurrency could close towards $ 30,000 based on a reliable technical indicator.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin is brewing for another uptrend, As IncomeSharks points out. Source: BTCUSD on TradingView.com

“Bitcoin’s SuperTrend,” said the analyst, “gave the daily newspaper a purchase price of $ 11,000.” It’s not bearish yet. Almost 155% move immediately after this indicator. Each support touch was a great buying opportunity (last loaded at $ 16,000). “