Bitcoin is currently trading at over $64,000. Just recently, I wrote that the price of cryptocurrency is less than USD 60,000. Why this sudden increase?
Bitcoin price… is rising again
Let's look at the chart. Bitcoin costs approximately USD 64,250 at the time of writing, which translates into a 3% increase over 7 days and 1.3% since yesterday.
Ether does even better. While investors only broke even during the week (the weekly increase/decrease is currently 0%), since yesterday they have already gained almost 3%. Today, 1 ETH costs USD 3,176.
The mood is also good again. Greed has returned to the BTC market. Instead of investor indifference. Currently, the Bitcoin Fear and Greed Index is 71.
The Ethereum Fear and Greed Index is 60, which also translates into market greed.
Where do these increases come from?
Exactly, it's worth asking the question from the headline: why is bitcoin rising when many predicted it will fall to hell again?
The answer is trivial, but still not understood by many less experienced investors. A bull market does not mean that a given stock is constantly growing. Growths are interspersed with declines, natural corrections. And something like this is behind us. The bitcoin price hit a local low. This was around the time I wrote about it in my May 1 article. Then the market made a double bottom and eventually a breakout, as seen in the chart below.
Of course, bitcoin's situation was improved by macroeconomic data from the USA. We learned that the American market has cooled down, which gives us hope that the Fed will not wait as long to cut interest rates as could be expected before the publication of this information. Another thing is that the market is still betting that rates will not be reduced in June.
However, you can count on the first cut in July. His probability is estimated today at 36.6%.
