Why do Bitcoin Prices Suddenly Suddenly Rise At This Time? – Fear of a Global Economy May Trigger the Bitcoin Rally
Bitcoin (BTC) has experienced significant volatility over the past few days, which, in many ways, is a symbol of improved market conditions, as BTC surged from year-to-year lows below the $ 4,000 level to recent highs this is almost touching the $ 14,000 figure.
Now, analysts note that the Fed’s recent dovish attitude about the economy is what triggered the latest crypto rally, but the question now is whether the status of Bitcoin as a safe haven asset will be enough to keep pushing it higher or not.
At the time of the press, Bitcoin prices traded more than 5% at a price of $ 12,282 or Rp 173 million and rose significantly from its 24-hour low of $ 10,500, according to CoinGecko .
After quickly surging to the highest level of $ 13,800 earlier this week, BTC experienced a large wave of selling pressure that made it drop lower which acted as a “slap” on the Bulls’ faces relaxing in the pleasure of Swing Up Bitcoin.
Nonetheless, BTC has since posted a strong recovery from its lowest level of $ 10,500 and is now almost breaking back into the region of $ 12,000.
Although what caused the massive Bitcoin price movement has always been a mystery, analysts note that this latest increase may be triggered by the Fed’s dovish attitude towards the economy, which may have caused many investors to choose to switch to Bitcoin.
Jim Iuorio, a Senior trader and managing director at TJM Institutional Services, told CNBC:
“It really started to raise enthusiasm when the Fed began to turn towards dovish. So, that means all three central banks are quite dovish. I think that’s why people get into bitcoin. ”
Although the Fed’s attitude towards the economy can be largely defined as dovish at the moment, it is not clear whether concerns about potential economic problems at this time will be enough to push Bitcoin higher.
Nevertheless, analysts also believe that the technical strength generated by Bitcoin as a result of its move above the level of $ 10,000, may be enough to lead the BTC significantly to move higher.
Jim Iuorio also said:
“The size and speed of the rally cannot be maintained, and the size and speed of correction is even worse. But what is done like that is waving a weak hand … This is … a healthy movement … I think [Bitcoin] can easily strengthen itself above the level of $ 10,000 and continue what is being done before. ”
When the week ends and the weekend trading session starts, it is very likely that BTC will continue to be higher as the increase increases buying pressure and continues upward momentum.