The price of Bitcoin (BTC) fell above the key spiritual level of $30,000 for the first time since June 2022.
The price of the first cryptocurrency has been rising sharply since the Silicon Valley Bank collapse as crypto investors are anticipating a possible pause in the federal government’s interest rate hikes. The continued strength in technology products and growing industries also helped propel Bitcoin over this threshold.
Optimism in the general market and the low liquidity situation helped to push Bitcoin past the $30,000 mark in the near term – BTC has seen a gain of more than 6% in the last 24 hours. The world’s largest cryptocurrency has been suffering under $30,000 since June 2022, more than 50% off its all-time high above $64,000 in November 2021.
Ethereum (ETH) won hand to hand with BTC. The world’s second largest crypto by market capitalization is preparing for the upcoming Shanghai promotion. ETH is up around 3% in the last 24 hours, breaking above the $1,900 barrier for the first time in almost a week.
Why is Bitcoin rising today?
At the Federal Open Market Committee (FOMC) meeting in March, the Federal Reserve raised interest rates by a quarter of a percentage point between 4.75% and 5.00%. This is the highest federal funds rate since 2007, and several Fed officials have suggested that there may be a pause in rate hikes soon.
The statement followed the March meeting of the Fed was the first in months not to say clearly that more rate increases will be needed, and the risk assets have rejoiced. The tech-heavy Nasdaq Composite Index is up more than 16% for the year, while the Dow Jones Industrial
Average is up more than 1% over the same period.
This hope in tech products has been reduced to cryptocurrencies. Bitcoin is up more than 80% this year alone, while major altcoins ETH and Binance Coin (BNB) are up 59% and 35% respectively.
Is the crypto winter over? Short-term water conditions helped fuel the bull case even more, causing Bitcoin to soar overnight. Since Monday, more than $150 million in short Bitcoin positions have been accumulated. When a small situation is watering, the business is
often stimulated. This could add further upside to an already rising market. The current price hike in crypto has many enthusiasts declaring
that “crypto winter” is over. The bull market is back. Since the Terrafrom Labs blockchain project – and its corresponding TerraUSD and Luna coins – failed in the spring, investors and customers believe that the wider cryptosphere is facing a crypto winter, a long period of
failure. market with a large range of cryptocurrencies.
What does the return of Bitcoin mean for investors? The big question facing investors right now is whether this is another sign that Bitcoin’s bottom is somewhere or if the storage is just a dead cat to come back – where the market temporarily rebound between a long term bad behavior, only to resume failure after that. .
While the recession gave a welcome boost, the reality is that we are in unprecedented territory when it comes to many things, including the geopolitical climate, economic indicators and the Fed’s relationship with Interest. Anyone familiar with the industry knows that even in the
best of times, it is almost impossible to predict the short-term price of digital assets. This is especially true in this market area.
