Bitcoin’s price has significantly increased recently, indicating that investors are paying attention to it. The BTC Price has also surpassed the $30,000 threshold, drawing the attention of market participants.
In recent weeks, the price of bitcoin had been circling around $27,000 to $28,000, which has improved the situation for investors, especially in light of recent volatility and uncertainty in the cryptocurrency market.
With this, it might be claimed that BTC is now starting to be viewed as an asset with reduced risk.
factors behind Bitcoin’s upsurge
A drop in the value of the dollar, a slowdown in inflation data, and the end of rate increases in the United States are cited as some of the primary reasons why bitcoin has recovered.
Meanwhile, investor optimism appears to have been boosted by rumors about the approval of the Bitcoin Spot ETF. Many experts now believe that the decision could lead to a rise in the price of bitcoin.
The market is particularly interested in what will happen next as the largest cryptocurrency in the world has achieved a new level. This week saw approximately $200M in withdrawals from centralized exchanges for both Bitcoin and Ethereum, indicating buying activity.
Positive developments in the XRP case, which encouraged investors’ hope, is another significant factor driving up the price of bitcoin. Notably, investors began to believe in the potential of bitcoins, one of the top assets, after the SEC dismissed its accusations against the XRP executives.
Additionally, Federal Reserve Chair Jerome Powell made comments about a probable halt in interest rate hikes during a speech at noon, which stoked market optimism.
Powell specifically mentioned that the central bank might suspend its long history of interest rate hikes if inflation maintains its recent trend and long-term Treasury yields remain high.
The financial markets immediately reacted to this news, which caused Bitcoin’s price to rise by a quick and significant 5% during the course of the previous day.
Price of Bitcoin and Market Response
Speaking of Bitcoin price and market, domestic events have a sizable positive impact on reaction volatility. Additionally, international events have an impact on both the volatility and expectations for market reactions.
As of the time of writing, the price of one bitcoin was $30,035.55, showing an increase of 5.67% over the previous 24 hours. However, at the same time, its volume soared 103.76% to $22.14 billion. Notably, the current rise in cryptocurrency prices has increased its value by about 12% over the past week.
Notably, the Greed Index indicated that the reading was 53, indicating a shift in the emotion from neutral to greedy. This suggests that despite continuous geopolitical unrest and other issues, the market has recovered trust in the risky assets.