Reasons for Bitcoin Price Hike & Its Impact on the Global Market

In one of the most significant single-day movements in recent months, the price of Bitcoin surged past $26,000 yesterday. Within about 30 hours, the bitcoin price climbed from $21,700 on Monday to a multi-month high of $26,264 today, representing a gain of over 20%.

Despite the recent surge in BTC, its price range of $16,000-$25,000 makes it premature to declare a fully bullish market. Nevertheless, BTC has found support at the 200-day mean trend level of $20,000, and buyers have quickly pushed it back up. As traditional markets continue to experience a global meltdown, investors have become more confident in BTC, with some experts pointing out that surpassing the $24,000 level would be a crucial milestone.

Possible Reasons Behind the Bitcoin Price Hike

• Preoccupations with CPI and inflation:

The US Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) for February, which revealed inflation at 6.0%, in line with forecasts. This inflation data could potentially provide the Federal Reserve with an opportunity to halt or decrease interest rates, making it a positive development for Bitcoin. As a result of this news, Bitcoin broke through the resistance level of $25,200 and reached $26,278, indicating a bullish trend for the bitcoin and the wider crypto market.

• Recent US Bank Closures news Rocked the Markets:

The recent closures of banks that were friendly towards crypto, such as Silicon Valley Bank and Signature Bank, did not seem to have any effect on crypto prices. However, it remains to be seen if this trend will persist in the future.

The Federal Reserve’s decision to raise interest rates has a significant impact on the financial system, including banks and other sectors. When interest rates go up, borrowing becomes more expensive, leading to a slowdown in economic activity. This, in turn, can result in a decline in revenue for banks, which can cause their stock prices to drop.

On the other hand, Bitcoin has emerged as a safe-haven asset during times of uncertainty. As investors worry about the impact of higher rates on the economy, they turn to Bitcoin as a hedge against inflation and currency devaluation.

With the global economy experiencing turmoil, many governments have resorted to printing money to stimulate their economies. As a result, investors have turned to Bitcoin as a way to safeguard their wealth.

Also Read: Top White Label Crypto Exchange Providers in 2023

Impact of Bitcoin Price Hike in the Global Cryptocurrency Market

The global crypto market cap has surged to $1.11 trillion, showing a 2.74% gain in the last 24 hours. Altcoins such as Polkadot, which rose by 3.84% to $6.34, Dogecoin, which increased by 2.63% to $0.07503, Solana, which reached $21.03 with a 2.16% increase, Ripple, which rose by 1.34% to $0.3789, and Litecoin, which gained 3.28% to $84.46, are all trading in positive territory. However, Bitcoin still dominates the gains when compared to other large-cap cryptocurrencies. The possibility of an altcoin season cannot be ruled out, where altcoins could catch up with Bitcoin’s gains.