Bitcoin crosses $30,000: possible reasons for its sudden rise

On October 20, Bitcoin, the market's most iconic cryptocurrency, reached the $30,000 mark. Continuing its rise over the past week, Bitcoin could break out of its range by breaking $32,000 resistance. As disinterest in the cryptocurrency market grows, this ascent has taken many market investors by surprise. In this article, we explore possible reasons for its sudden rise.

Bitcoin crosses $30,000: possible reasons for its sudden rise

Table of contents




Waiting for approval of Bitcoin ETFs

One of the main explanations is undoubtedly the anticipation of the approval of a Bitcoin Spot ETF in the USA. Institutions applying for a Bitcoin Spot ETF, such as Blackrock and Fidelity, continue to update their ETF proposals. As the changes progress, optimism is gaining ground within the crypto community. Indeed, this event, widely discussed on social networks, is fuelling speculation about a possible Bitcoin Spot ETF, which is eagerly awaited by investors. To date, several financial experts believe that the launch of a Bitcoin Spot ETF could be a catalyst to trigger a rise in the price of BTC.

It's worth noting that the launch of a Bitcoin Spot ETF would make investment much more accessible for institutional and retail investors alike. This ETF would increase demand for Bitcoin, and many observers are eager to see its impact on the market.

Ripple case dropped

Another reason for Bitcoin's rise is the SEC's withdrawal of its appeal in the Ripple case. While this decision concerns Ripple, it has a positive impact on the entire market, as it brings an additional degree of regulatory clarity to the cryptocurrency market. This in turn reduces uncertainty and boosts investor confidence. This renewed confidence has been followed by an influx of capital into the cryptocurrency market, contributing to the rise in the price of BTC.

Inflationary concerns

The persistent rise in inflation has also played a key role in the surge in Bitcoin's price. As a decentralized asset with limited supply, Bitcoin is increasingly seen as a hedge against inflation. Faced with ongoing inflationary pressures, many investors are turning to Bitcoin in an attempt to preserve their wealth. This rise in inflation, accompanied by increased demand for Bitcoin, may partly explain the increase in Bitcoin's price in recent days.

Interruption of interest rate rises

Federal Reserve Chairman Jerome Powell hinted in a speech dated October 20, 2023, that he might put an end to interest rate hikes, boosting market optimism. He said that if inflation continued to rise and long-term Treasury yields remained high, the central bank could pause its historic interest rate hikes. While not a victory cry, this announcement immediately had a positive impact on the price of Bitcoin and the cryptocurrency market more generally. Ultimately, the decision on whether or not to raise rates will depend on how the economy performs in the months ahead.

Conclusion

Bitcoin's recent rise indicates a strengthening of investor confidence in risky assets. Several factors, both internal and external to the cryptocurrency market, could explain this positive impact on Bitcoin. However, it is important to note that the global geopolitical and economic context remains unstable, with significant challenges ahead.

  1. As for Bitcoin, although its price continues to rise, market sentiment remains neutral. It is therefore imperative to adopt a cautious approach. While the coming weeks will be decisive for Bitcoin, investors should remain alert to the various regulatory and economic factors that are likely to continue to influence cryptoasset prices in the months ahead.
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Disclaimer: this is not financial advice. The Satolix.io website aims to inform readers about Blockchain, cryptocurrencies and Web3. Any type of investment involves risk. Please do your own due diligence and research the articles and projects presented on the site. Be responsible and do not invest more than your goals or financial means allow. In this regard, read our page: Warning about virtual currencies.

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