Will Bitcoin rise?
The world’s largest cryptocurrency Bitcoin reached above $91,000 for the first time in almost a week. After the decline of last one month, some improvement was seen in it. The rise in risk assets and calmness in the market are giving traders an opportunity to push prices higher. During this period the stock market also collapsed. But, for the last 2-3 trading days, it is seeing a great rise. Be it Indian market or American market, both are closing with green mark. In such a situation, now the question is whether Bitcoin will again go towards its record. Let us understand this in details.
Along with Bitcoin, other cryptocurrencies have also risen. Ethereum rose 3.75% in the last 24 hours and crossed $3,000. Many major altcoins like XRP, BNB, Solana, Tron, Dogecoin, Cardano and Hyperliquid have also increased by more than 4%. Bitcoin rose 4% to $90,460 on Wednesday, compared to a record high of $126,000 in early October. That means it is down about 28% from there. However, a slight decline was seen on Thursday. But that is only minor. There are full chances of recovery.
Why did Bitcoin increase?
CoinSwitch Markets said that BTC remained calm throughout the day between $86,500 and $87,500, but after a sudden surge it reached $91,000. This surge came due to short-squeeze. Due to this, Bitcoin has increased by 4.4% in 24 hours. Also, investment in BTC ETF has increased in 2 out of the last 4 days, which shows that the interest of big companies and institutions is increasing again.
There was a slight recovery after the fall in Bitcoin. New purchases and better environment in the entire market supported it. According to Mudrex CEO Edul Patel, an estimated 1.8 million bitcoins were withdrawn from exchanges overnight, which is believed to be increasing activity by large institutions.
crypto market
The trend of the crypto market remained the same as the stock market, because it is expected that the Federal Reserve may reduce interest rates soon. US unemployment claims were lower than expected and PPI also remained stable, strengthening expectations of a Fed rate cut. WazirX said that due to the weakening of the Japanese currency Yen, money may move out of risky assets. If Japan tightens financial conditions, its effect may be visible. Although liquidity has improved a bit, but initially the environment does not appear to be very strong.
In Mint report, Pi42 CEO Avinash Shekhar says that there is less confidence among traders. Prices are moving within a limited range. Many people are waiting for a clear signal before taking new positions. He said that there is caution in the market right now. Buyers do not have enough strength to make a big breakout and sellers are also not able to take the price down much. Therefore the market is in a state of waiting. The next big move will probably depend on some major economic data, changes in liquidity or new signals from the derivatives market.
bitcoin trend
According to Edu Patel of Mudrex, if the demand from small investors continues to increase like this, Bitcoin may cross $95,000. After going above this level, the momentum will become stronger and new heights can be seen. Rhea Sehgal, research analyst at Delta Exchange, said Ethereum is trying to stay around $3,000 due to expectations of the Fed reducing interest rates in December, $96 million of ETF investments and increasing institutional interest. If it turns out to be above $3,130 then it can go towards $3,400. Below, its strong support is at $2,970.