On April 26, Bitcoin (BTC) went beyond the $29,800 barrier, climbing as high as $30,024 on Bitstamp. This is the first time since March that the cryptocurrency has crossed the $30,000 threshold, representing 9.6% in profit in just one day. It is gathered that the 27% increase in BTC’s value between March 26 and April 26 was a result of the bull run which prevailed because of April’s $3.2 billion monthly options deadline.
Investigations into the market performance show that the cryptocurrency market is being closely watched by investors as the bulls are well-positioned for the weekly $3.2 billion options deadline. Given that Bitcoin has already exceeded the $29,000 resistance barrier and is currently nearing the $30,000 mark, many think the positive trend will continue.
This is encouraging news for the cryptocurrency market, which has recently struggled to gain traction. Having said that, it was also revealed that the United States Federal Reserve has hinted that it may likely increase the dollar interest rate to over 5%. The implication of this action is said to have a direct effect on the cost of capital but will assist the central bank in effectively controlling the rapidly rising inflation.
Professionals who interpreted this development said that this will lead to a bearish cryptocurrency market (including BTC) hence, propelling a weaker economy. Some experts on the other hand have accused the inability of the BTC to hit $31,000 on the hostile cryptocurrency laws, which the United States is the worst hit.
Role Of SEC And The Federal Reserve In This Development
They pointed out the recent Coinbase lawsuit with the Securities and Exchange Commission (SEC) as one of the repercussions of such laws. Along with these elements, the current increase in Bitcoin’s price can also be ascribed to the US dollar’s depreciation.
The Federal Reserve has kept its liberal monetary policy in place, which has put pressure on the US dollar recently. As a result, there are now worries about inflation, which has pushed investors to turn to alternative assets like cryptocurrency.
Despite the recent increase in price, uncertainty remains regarding the volatility of the cryptocurrency. Bitcoin’s price can change drastically because of the cryptocurrency market’s common volatility. Because of this, it is believed that it may be challenging for investors to forecast the market’s future course. If they are not careful, this could result in substantial losses.
In the long term, many investors are still optimistic about Bitcoin. They think that cryptocurrencies will continue to appreciate over the coming years and have the potential to become widely used as an asset class.
The Effect Of This Trend On Other Cryptocurrencies
Other cryptocurrencies like Ethereum (ETH) and Litecoin (LTC) are benefiting from the recent rise in Bitcoin’s price. Both cryptocurrencies have witnessed major moves recently, with Ethereum surpassing $2,500 since April 15 for the first time. This indicates that interest in the industry is rising, which is good news for the wider cryptocurrency market.
It was also gathered that the recent increase in the price of Bitcoin is encouraging for the cryptocurrency market because it shows that investors are growing more optimistic about the long-term prospects of cryptocurrencies. Many investors think that the bullish momentum will continue in the upcoming weeks, and the bulls are well-positioned for the weekly $3.2 billion options deadline.
Analysts who explained the development revealed that the 1.19 call-to-action ratio has to do with the shaky behavior which is between a $1.7 billion ‘buy’ call and a $1.5 billion ‘sell’ call.
They went ahead to predict that should the price of BTC maintain its $29,500 position, or anything close to it up till eight o’clock AM (UTC) on the 28th of April, only about $54 million worth of Bitcoin sales will be left for sale. Verdicts from popular opinions believe that it will be irrelevant for any trader to sell their coin at either $29,000 or $28,000 when the BTC bull run is on the verge of expiring.
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