The price of Bitcoin largely accentuated its rise yesterday, with a peak just above the $21,000 threshold, and remains close to this peak on Thursday morning. The other cryptocurrencies are not left behind, with some top 20 tokens posting double-digit increases compared to yesterday, which has allowed the capitalization of the crypto market as a whole to return to the symbolic milestone of 1000 billion dollars.
Thus, at the time of writing this article, Bitcoin is up 1.77% over 24 hours and more than 8% over a week, while Ethereum has gained 2.65% since yesterday and more than 20% over 7 days. . But it’s the price of Dogecoin which wins the best performance of the top 10 crypto, with a gain of 19% since yesterday and 30% over one week.
Since last Friday’s low at $18,660, Bitcoin has therefore posted a gain of around 13% on yesterday’s peak, which gives hope for the advent of a lasting bull market for cryptocurrencies, after months of lean cows.
It is indeed all the more likely that the rise of Bitcoin and other cryptocurrencies in recent days is based on very concrete fundamental factors, as we will see in this analysis.
Bitcoin sellers capitulate
Following Bitcoin’s annual low around $17,600 on June 18, investors began to bet massively against the cryptocurrency via the futures markets. However, the rise of the past few days has led to a wave of liquidations, which could mean that sellers are capitulating and leaving control of the market to buyers.
Indeed, data shows that liquidations of short Bitcoin positions amounted to $550 million yesterday. However, liquidations of short positions contribute directly to driving up the price of bitcoin, since short positions are closed through purchases.
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Crypto Investors Speculate on a Fed Pivot
Another factor behind the rally in Bitcoin and other cryptocurrencies in recent days is market speculation that the Fed’s rate hike may slow. Indeed, recent US economic data, as well as some cautious statements by members of the Fed led the market to expect the central bank to soon reduce the pace of its rate hikes.
But just as the prospect of rising rates has plagued cryptocurrencies in recent months, the prospect of rising rates slowing and then coming to a halt is a massive relief for BTC and other digital assets.
In this regard, it should be noted that the preliminary GDP of the United States for the third quarter expected this afternoon could further reinforce these speculations, and to push Bitcoin further, in the event of disappointing data. It will then be a good opportunity toinvest in cryptocurrencies for the long term.
If, on the contrary, US growth turns out to be stronger than expected, downward pressure on Bitcoin will be expected.
UK appoints crypto-friendly prime minister
The selection of Rishi Sunak as the new Prime Minister of the United Kingdom has also played a role in the cryptocurrency rebound in recent days. Indeed, Sunak is known as a cryptocurrency advocate. Therefore, many expect him to undertake positive reforms for the crypto sector.
During his tenure as finance minister under Boris Johnson, Sunak made clear his desire to make the UK a cryptocurrency hub, saying:
“I have the ambition to make the UK a global hub for crypto-asset technology, and the measures we have presented today will help ensure that businesses can invest, innovate and scale up. scale in our country.”
Moreover, beyond the appointment of Sunak which could lead to a favorable framework for the development of the crypto industry in Great Britain, there is a global trend towards the establishment of regulations that are more comprehensive of the specificities of the cryptocurrency. cryptocurrency world.
However, even if some take a dim view of state regulation of cryptocurrencies, the fact is that a clear legal framework would undoubtedly massively increase the adoption of cryptocurrencies, and whose prices, including that of the market leader, the Bitcoin.
Do you want to spot the cryptocurrencies that will progress the most in the looming bull market? Check out our guide to cryptocurrencies that are most likely to explode !
