Easter Monday saw Bitcoin (BTC) make headlines, reaching its highest peak since June 2021 and flirting with the threshold of $30,000. And although its cause was unclear, each rise in Bitcoin sees investor optimism heighten. What’s more, investors are increasingly viewing BTC as a risk-off asset, with its decreased correlation to the equity markets.
Market activity from Monday saw BTC linger near $28,000, trading as low as $27,200 and as high as $28,400. In turn, Ether (ETH) rose 0.2%, hovering around the $1,787 mark, while cryptocurrencies such as Dogecoin (DOGE) and Alchemy Pay’s native ACH token experienced notable increases. Simultaneously, markets were mixed, with the S&P 500 and Dow Jones Industrial Average close to the 0.3% and 0.9% marks respectively.
The biggest movement in terms of BTC came with the Bureau of Labor Statistics’ revelation of the February Consumer Price Index (CPI), with inflation falling to 6% as per a 0.5% increase in its core rate, stripping out food and energy costs. Bahraini, CEO of Bitcoin Opportunity Fund, said the pullback for BTC expressed traders’ cautiousness, regarding both CPI numbers and global events.
Furthermore, numerous indicators have pointed to improving liquidity conditions, following the November collapse of Alameda Research. Kaiko’s report showed that BTC and ETH experienced far less market depth compared to their pre-crash levels. Edward Moya, Senior Market Analyst at foreign exchange market maker Oanda, suggested BTC needs a bullish indicator to break above the $30,000 mark.
Nevertheless, the possibility of a sustained BTC surge remains uncertain. Joe DiPasquale, the CEO of crypto fund manager BitBull Capital, argued a price move with potential for success could see BTC reach $30,000 before retreating, if not, it could copy last July’s bounce-back of over $20,000. While Richard Mico, the U.S. CEO and chief legal officer of Banxa, commented on BTC’s status as a “reliable store of value.”
The coming weeks could offer insight into the sustainability of Monday’s BTC surge, with the March CPI report, quarterly earnings for banking giants such as JPMorgan Chase, Wells Fargo and Citigroup, and the U.S. central bank’s continued stance on inflation anticipation. With investors remaining hopeful in the face of various conditions and Bitcoin hitherto responding also, eyes will certainly be on the $30K threshold to witness BTC’s progress – as well as a potential bounce from last July.
Bitcoin Headlines the Scene: Eyes on $30K and a Potential Bounce From Last July Amidst the Easter Monday Market
From buoyed inflation data and banking sector stabilization, to investors eyeing a reversal of the U.S. central bank’s hawkish prescription of inflation due to its oversteps, Easter Monday saw Bitcoin (BTC) make headlines as it reached its highest peak since June 2021 and flirted with the threshold of $30,000.
Staying firmly within the range it has held for much of the past two weeks, BTC oscillated between $27,200 and $28,400 before arousing investor optimism at the reveal of the Consumer Price Index’s (CPI) February figures. Midday saw BTC reach the $29,744 level before dropping back down.
Investors’ belief in BTC as a “reliable store of value” with its decreased correlation to the equity markets further saw Ether (ETH) rise 0.2%, while Dogecoin (DOGE), Alchemy Pay’s native ACH token, and LQTY, native token for decentralized borrowing protocol Liquity, experienced notable increases.
James Lavish, Bahraini, CEO of Bitcoin Opportunity Fund, that BTC had “got ahead of itself with short covering after pushing through key $25,000 resistance for traders,” but that optimism in the face of events such as the banking stability remains. Joe DiPasquale, the CEO of crypto fund manager BitBull Capital, additionally suggested that success in the current move could see BTC reach and surpass $30,000 momentarily, before tumbling back down.
The coming weeks could provide more insight on the sustainability of this surge, with markets awaiting the March CPI report, quarterly earnings for banking giants JPMorgan Chase, Wells Fargo and Citigroup, and whether the stance shift of the U.S. central bank on inflation anticipations holds. As investors remain hopeful and BTC responding, eyes will be on the $30K threshold to witness BTC’s fate.
