Bitcoin (BTC) made an alluring move on April 10, heading over $30,000.
After bouncing above $30,000 a little over three weeks ago, Bitcoin rose above $29,744 in the afternoon, its highest since early June, amid optimism in the market. But the reason for the increase is unknown.
“There are no clear drivers for this surge,” said Edward Moya, senior market analyst at Oanda.
“Purchasing of cryptocurrency traders complaining on social media to a one-sided article in the New York Times about (bitcoin’s) energy consumption,” he added.
He also noted that it happened around the time news broke that “the Federal Home Loan Bank (FHLB) debt issuance is declining and the banking crisis is easing.”
Ethereum (ETH) also rose, temporarily exceeding $1,900 (as of 8:45 on the 11th, Japan time, it exceeded $1,900 again).
Other major crypto-assets also rose modestly, but generally. Layer 2 blockchain Arbitrum (ARB) is up more than 2.8% in 24 hours, while XRP (XRP) is up around 1%.
The CoinDesk Market Index (CMI), which measures the performance of the entire crypto market, rose 2.3%.
Stock markets were broadly flat overall, with the S&P 500 and Dow Jones Industrial Average up slightly, the Nasdaq down 0.03%. Among crypto asset-related stocks, Coinbase and MicroStrategy both rose significantly by more than 7.5%.
Recognized as a store of value
This week, the market is set to release the US Consumer Price Index (CPI) for March. CPI slowed to 0.4% in February from 0.5% in the previous month, or 6% on an annualized basis from 6.4%. Bitcoin rose above $26,000 on March 14 on the news.
If inflation continues to slow, the Fed could scale back its harsh year of rate hikes. But the impact on Bitcoin is unclear. Bitcoin appears to have gained momentum after bank failures created fears for the traditional financial system.
Investors are also eyeing the first-quarter results of US banks JPMorgan Chase, Wells Fargo and Citigroup. Analysts expect earnings to fall sharply in the financial services sector, which was particularly hard hit.
“Bitcoin is seen as a trusted store of value without the problems associated with storing money via third-party intermediaries and banks,” said the cryptocurrency industry for payment & compliance infrastructure. In an email to CoinDesk, Richard Mico, US CEO and Chief Legal Officer of Banxa, which provides .
“This is further supported by the declining correlation with the stock market after 2021. Bitcoin is now beginning to be properly perceived as a risk-off asset.”
BitBull Capital CEO Joe DiPasquale was cautiously optimistic about the sustainability of Friday’s rally.
“Bitcoin will likely find resistance at $30,000,” said DiPasquale. In technical analysis, the current move is “retesting the high of the range we established in March after the initial rally below $20,000. If successful, price will establish $30,000, if not, 2 $5,000, then down to $23,000.”
“The current price is also testing the lows of July 2021 when the market again headed for a big rally,” he added.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: Bitcoin Approaches $30K, Reaching Highest Price Since June
The post Bitcoin approaches $ 30,000 ── Highest price since early June | coindesk JAPAN | Coindesk Japan appeared first on Our Bitcoin News.