bitcoin recently rose above $42,000, having bitcoin-price-crashed-below-40000/” rel=”nofollow”>traded below $40,000 For several days. This market recovery is believed to be the result of different factors, including bitcoin/” rel=”nofollow”>Recent revelations about the US economy..
Macroeconomic Factors That Contributed to bitcoin's Recent Rise
The personal income expenditure (PCE) price index, a bitcoin–btc-leading-indicator-cpi-inflation/” rel=”nofollow”>leading inflation indicatorwas released on January 26 and reported have been less than expectations. This suggests that inflation in the United States is cooling and experts predict that the Federal Reserve will likely reduce its aggressive monetary policies.
The Federal Reserve's hawkish stance is known to have a bitcoin-recovers-on-fed-hike/” rel=”nofollow”>negative effect on bitcoin price and the crypto market in general. As such, this recent development is positive and is something that could have influenced investors to double down on their investments in the flagship cryptocurrency, thus causing a price surge.
Meanwhile, data The US Treasury recently showed that the country has reached a debt of all time of 34.1 billion dollars. While this has raised concerns about the imminent decline of the US dollar, it has also introduced bitcoin and other cryptocurrencies. bitcoin/” rel=”nofollow”>like a refuge to protect against potential devaluation of the country's currency.
Interestingly, different financial analysts, including renowned economist Peter Schiff, have continued to predict the imminent fall of the US dollar. In light of this, bitcoin-is-a-hedge-tool-robert-kiyosaki/” rel=”nofollow”>financial author Robert Kiyosaki has urged everyone to invest in bitcoin to avoid becoming poorer due to the government's actions.
Another factor believed to have contributed to bitcoin's recent surge is the expiration of monthly btc options contracts on Deribit. The expiration outcome has most likely played a crucial role in bitcoin's rally, considering CryptoQuant CEO Ki Young Ju bitcoin-crash-cryptoquant-ceo-says/” rel=”nofollow”>had pointed out the derivatives market as responsible for the recent fall of bitcoin.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/Renowned-Economist-Says-Bitcoin-Price-Will-Hit-10-Million-After" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
btc price jumps after downtrend | Source: BTCUSD on Tradingview.com
GBTC output slows for fourth consecutive day
bitcoin-etf-outflows-end-experts/” rel=”nofollow”>GBTC in grayscale Mountain range an outflow of just $255.1 million on January 26, continuing a recent trend of reducing outflows from the fund. NewsBTC reported how the bitcoin ETF had experienced outflows of $515 million, $429 million, and $394 million on January 23, 24, and 25, respectively.
As noted by James Seyffart, Bloomberg analystJanuary 26 also turned out to be the lowest departure day for GBTC since it became a bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>bitcoin Spot ETF. This development suggests that the fund's investors may be stopping taking profits. It is also significant because bitcoin-etf-imminent/” rel=”nofollow”>Grayscale has contributed to the selling pressure that has hit bitcoin lately.
At the time of writing, bitcoin is trading at around $41,700, up more than 4% in the last 24 hours, according to data from CoinMarketCap.
Featured image from U.Today, chart from Tradingview.com
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