The largest cryptocurrency in the world, Bitcoin has reached the very important level of $30,000, for the first time since June 10, 2022. BTC rebounded almost 80% this year and has shown exceptional performance until 2023. But why Bitcoin fell to the level of $ 30,000 and how to approach this session are questions that have puzzled investors around the world. Here’s a dive into what led to BTC’s sudden boom, and its continued rally
Bitcoin exceeded $30,000 for the first time since June 2022
Bitcoin jumped nearly 9% this week and hit a 10-month high. Last week, Bitcoin touched its trading level of about $28,000 and as soon as it broke above this level on April 7, 2023, BTC started to surge and touched $30,000 on April 11, 2023.
Bitcoin, which is hovering around $20,000, started to show an upward movement once the news of fraud from a tech-focused Silicon Valley bank in the US broke. Since then, Bitcoin has seen a sharp recovery and is up almost 80% this year.
The global cryptocurrency market value is trading at around $1.24 trillion, which is almost 4.49% in the last 24 hours. Now, experts believe that the next point to break for BTC is $35,000, if the bullish price continues.
Crypto experts believe that the rise of BTC means that the Federal Reserve (Fed) will temporarily stop its power to stop inflation by raising interest rates. As U.S. banks show higher credit risk, hit by backlash and fears of a recession affecting the U.S. economy, the Fed is expected to reduce its aggressive stance on key rates. .
With a domino effect, the recent economic crisis in the United States has exposed the risks of the banking system and increased the appetite for decentralized money in the form of cryptocurrencies, which are often considered as another protection for the banking system common throughout the entire world. not sure. Bitcoin price change in 2023
Bitcoin Price Chart (Last Month)
Why is Bitcoin rising?
Some of the main reasons why Bitcoin has risen to its highest level since June 2022 include:
Investors expect the Federal Reserve to continue raising interest rates in the United States amid the banking crisis. The pace of hiring has slowed, according to non-U.S. payroll data. said. Total nonfarm payrolls increased by 236,000 in March, compared with an average
monthly gain of 334,000 over the previous six months. The Fed’s
efforts to reduce unemployment fell short of expectations; This is seen as a positive sign for the Fed to maintain its hawkish approach.
The weakness of the banking sector in the United States has led digital currency enthusiasts to reiterate the importance of decentralization and the need to have full control of one’s own money without regulation. of banks that themselves are struggling to stay afloat in a
challenging global economy. environment. Bitcoin’s discount program, scheduled for May 2024, is less than a year old. This preparation for the event is expected to increase the price of BTC in 2024. What’s Next for Bitcoin?
Although the future of Bitcoin remains uncertain, retail investors can take advantage of this current opportunity by diversifying their portfolios through a structured investment plan (SIP). and BTC. They should be very careful because the upcoming economic events can cause the price of Bitcoin to change, which can swing in any direction.
When considering whether to park your hard-earned money in Bitcoin, it’s important to keep in mind that despite the increasing price of BTC, the currency is still trading at nearly 50 % off the all-time high of $68,990 in November 2021. The drastic change between the
changing macroeconomics around the world and the careful analysis of various crypto exchanges, cryptocurrency usage and acceptance have left the price of Bitcoin volatile, something that is hard to ignore when investing in Bitcoin.
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Conclusion
Nevertheless, the recent rise in the price of Bitcoin has raised the discussion of the next cryptocurrency boom and raised the opinion of the whole crypto community across the world. All look now at what food decides to do with the interest rate, which will determine Bitcoin’s future direction.
Disclaimer: History has been updated to reflect that BTC has started to rise and touch $3
