3 Reasons Bitcoin (BTC) Price May Rise More Soon

TL; DR

The price of Bitcoin has risen above $52,000, with some factors suggesting further growth in the near future. Changes in US interest rates may affect the valuation of the property.

Bitcoin (BTC) has been on a strong upward trajectory for the past few weeks, with its price increasing by more than 25% month-on-month and breaking above $52,500 for the first time in more than two years. In the following lines, we outline some important metrics and upcoming events that suggest the rally may not be over yet.

According to CryptoQuant, Bitcoin exchange has been increasing recently. Showing off Instead of relying on centralized platforms, investors have moved to self-sustaining methods. The trend is considered bullish as it reduces current selling pressure.

It is another factor that plays a role in the price increase for more BTC. Half of it (Scheduled to be held in April this year). The event will halve the previously planned inflation of the asset, because the reward of the miners will be reduced to 3.125 instead of the current number of 6.25 BTC.

Historically, halvings have served as a catalyst for future price increases as they reduce the number of newly created BTC. As such, if the demand remains the same or increases, the price must increase. Remember that property has arrived An all-time high of nearly $70,000 in November 2021, a year and a half after the last such event.

You can watch our exclusive video below to learn more about halving.

Last but not least, cryptocurrency prices could benefit from a possible pivot from the US Federal Reserve on its anti-inflationary policy. The central bank raised interest rates 11 times between March 2022 and July 2023 to counter the high inflation caused by the Covid-19 pandemic, the subsequent massive money printing and ongoing international conflicts, among other factors.

However, the Fed kept the benchmark unchanged during its most recent FOMC meetings, indicating rate cuts throughout 2024.

Higher rates make borrowing more expensive and can discourage people from investing in risky investments like cryptocurrencies. On the other hand, lowering the benchmark allows more individuals and entities to acquire external financing to deal with risky assets. Research done in 2022 Estimate 21% of participants took a loan to invest in crypto.