Bitcoin recently broke above $30,000, hitting its highest price since June. While investors remain optimistic following last month’s banking crisis, this rapid rise raises questions about the driving factors.
The Rise of Bitcoin: Factors and Consequences
As Microstrategy strengthens its investment in bitcoin, the price of this cryptocurrency has seen a significant increase, surpassing $30,000 on April 11. It hit $30,400, its highest level in ten months.
Although the causes of this surge are difficult to pin down, enthusiasm for bitcoin has been fueled by fears about the conventional banking system. Since the bankruptcies of certain banks, bitcoin has been presented as a good alternative to the current system.
Within 30 days, BTC recorded gains of nearly 46%reaching heights worthy of a mountaineer.
Traders, eager as children on Christmas Eve, await the US Consumer Price Index (CPI) report on April 12. Meanwhile, cryptocurrency-related stocks had a memorable day. Coinbase (COIN) and MicroStrategy (MSTR) both rose more than 7.5%.
Market impacts and future prospects
Markets will be watching the March CPI report for signs that inflation is continuing its recent downward trend. A continued slowdown could prompt central bankers to reduce their interest rate hike plan.
Investors will also take heed of the first wave of quarterly results, with banking giants JPMorgan Chase, Wells Fargo and Citigroup due to report results. According to some information gleaned by Coindesk, analysts are expecting a rather lackluster quarter. Particularly in the financial services sector, hard hit by the crisis.
Bitcoin’s breakout of $30,000 raises questions about the factors that caused this rapid rise. Although the causes remain uncertain, the renewed optimism of investors and the evolution of the economic context play a crucial role. A reason to believe in a 10 million dollar bitcoin one day? Jesse Myers believes in it.
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