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Bitcoin above $11,600; What Factors Driving Price Upward?

Bitcoin tops the highest value since the beginning of 2020 as it is trading above $11,600. The market cap of the cryptocurrency market is heading towards $350 billion as altcoins are also in the bullish phase.

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After remaining passive for two months below $9,200, the top digital asset is now moving upward. After breaking the crucial resistance of $9,200, and the price started moving up due to the accumulation of BTC on the part of investors.

Major Reasons Behind Price Rally

After US watchdog for banks permitted banks to open accounts for cryptocurrency businesses and custody option to store keys, digital assets started its move in the upward direction.

“We’ve been seeing more buying over the last few days, specifically since the past week’s announcement which would allow banks to hold custody,” Michael Rabkin, the head of institutional sales at trading platform DV Chain, said. “There’s definitely a more bullish sentiment since that announcement came out and as we’ve seen, has resulted in upward momentum.”

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The rising market cap of the digital assets market may be due to exceptional growth in value locked in DeFi markets. According to Defi Pulse, funds on DeFi platforms reached $4 billion.

The Federal Reserve’s money printing is another major reason for the recent bullish rally as investors are not happy with it. The debt is increasing and there are risks of high inflation after surplus money printing by the Fed. That’s why investors are seeking those assets which prevent them from inflation. Gold is serving its purpose but Bitcoin has also attracted the attention of people.

Some analysts predicted the price movement before it broke above $9,300. For example, a prominent analyst and trader Willy Woo proposed a model and shared it with the audience on June 27. According to Woo’s model:

“With the current break to 11K, I’m relatively confident last months model is working on queue, we’re at the start of the ‘main bull phase’… 365 day on-chain RSI shows the compression at the early phase of the bull cycle nearing completion, I’m expecting RSI expansion that typifies the main bull season run starting Q4 2020 into 2021.”

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Hassan Mehmood

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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