Yesterday, the BTC price topped USD 30k for the first time since April. There may be several reasons, among them:
→ Powell’s speech to lawmakers on Capitol Hill yesterday. The Fed chief said further rate hikes are a pretty good guess as to where the Fed is heading. The dollar index reacted to his hawkish statement with a fall. At the same time, it pushed up the bitcoin rate against the dollar. In addition, Powell paid tribute to cryptocurrencies, saying that they are stable and adding that the Fed views stablecoins as a form of money;
→ after the negative news background related to the Fed lawsuits, positive events followed, indicating the interest of institutional firms in the US in the crypto market. For example, the BlackRock fund (more than USD 8 trillion under management) filed an application last week to launch an ETF based on bitcoin. And a new cryptocurrency exchange, EDX Markets, backed by Citadel Securities, Fidelity and Schwab, has gone live;
→ change in the balance of supply and demand in the market after the price of bitcoin breaks through the psychological level of USD 25k.
It is possible that in the wake of the hype, the bulls will attack the high of the year, but at the same time, their success increases the likelihood of a correction.
Source: ActionForex
Recent Comments