Bitcoin recently soared above $42,000. Traded for less than $40,000 a few days. This market recovery is believed to be the result of various factors, including: Recent revelations about the US economy.
Macroeconomic factors that contributed to Bitcoin’s recent surge
personal income expenditure (PCE) price index; leading indicators of inflationwill be released on January 26th, report That was lower than expected. This suggests that U.S. inflation is calming, and experts predict that the Federal Reserve will likely scale back its aggressive monetary policy.
The Fed’s hawkish stance is known to have the following characteristics: Negative impact on Bitcoin price and the broader cryptocurrency market. Therefore, this recent development is a positive one and one that could prompt investors to double down on their investments in the flagship cryptocurrency, thereby triggering a price spike.
meanwhile, data A recent report released by the U.S. Treasury showed the country is in crisis. forever in debt 34.1 trillion dollars. This raised concerns about an impending collapse of the US dollar, but it also led to the emergence of Bitcoin and other cryptocurrencies. as a shelter To prevent potential devaluation of the country’s currency.
Interestingly, various financial analysts such as: Renowned economist Peter Schiff, has continued to predict that a dollar collapse is imminent. Considering this, Financial writer Robert Kiyosaki He urged people to invest in Bitcoin to avoid being made even poorer by government actions.
Another factor that may have contributed to Bitcoin’s recent rally is the expiration of monthly BTC options contracts on Deribit. Considering the statements made by CryptoQuant CEO Ki Young Ju, the expiry result likely played an important role in Bitcoin’s rise. had specified The cause of Bitcoin’s recent decline is the derivatives market.
BTC price jumps after downtrend | Source: BTCUSD on Tradingview.com
GBTC fund outflows decrease for 4th consecutive day
GBTC in grayscale saw Outflows on January 26 were just $255.1 million, continuing the recent trend of declining fund outflows. News BTC report Bitcoin ETFs experienced outflows of $515 million, $429 million, and $394 million on January 23, 24, and 25, respectively.
as I got it. by Bloomberg analyst James SeifertJanuary 26th was also GBTC’s lowest outflow day since its conversion to currency. Spot Bitcoin ETF. This development suggests that fund investors may be taking a break from taking profits. This is also an important reason. grayscale This is contributing to the selling pressure that has plagued Bitcoin recently.
At the time of writing, Bitcoin was trading around $41,700, up more than 4% in the past 24 hours, according to data from CoinMarketCap.
Featured image from U.Today, chart from Tradingview.com