Bitcoin’s price remains above the ATH level of the 2017 bubble. Is this just a rebound from the declines, or a sign that the worst on the market is behind us?
The price of bitcoin is rising
As of today, 1 BTC costs approximately $ 21,200, a 4% increase over 7 days ago and a 2% increase over yesterday.
Ether is doing even better. 1 ETH costs approx. 1200 USD. The course was therefore at the ATH level of 2017. This is 13% more than a week ago and about 7% more than 24 hours ago.
It is worth considering whether the above increases are the result of a rebound of declines or a sign that the bottom is already behind us.
Unfortunately, the current BTC market situation is strongly dependent on subsequent decisions of the Fed. The U.S. central bank recently announced that it is ending its quantitative easing policy and will continue to raise interest rates. In fact, it must have a negative impact on the stock and cryptocurrency markets.
At the same time, let us remember that the current Fed volte-face cannot last long. The financial system has long been based on generating more and more debt. As a result, without the inflow of “fresh” money, further crises would await us. This means that the Fed – and other central banks – will have to quickly return to printing and low interest rates. In addition, the elections to the AMERICAN Congress are approaching. The Democratic Party and Joe Biden himself are currently underperforming in the polls, so politicians will have to do a lot to save their situation. This may mean further, generous social welfare in the US, i.e. in practice the printing of dollars. This is the fuel for the further bull market on bitcoin.
Index of Fear and Greed
In addition, the famous BTC fear and greed index has recently fallen to record lows – below 10. This showed how bad the mood was on the stock exchanges. Now he has risen to 14.
Past bad moods also suggest to us that the low on the BTC chart may be behind us.
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