The Bitcoin price has surged a remarkable 10% in just one week, sparking renewed optimism and speculation that a fresh bull market may be on the horizon. Bitcoin’s value has been increasing over the past few days and has seen a significant increase in value of more than 80% since the beginning of this year.
Meanwhile, Ethereum (ETH), the second largest cryptocurrency, experienced a surge in its value, rising above $2,100 for the first time in nearly a year mainly after upgrading to a proof-of-stake network in Shanghai.
The upticks can be attributed to the increasing probability of the Fed’s less aggressive stance. It is worth noting that Federal Reserve is likely to stop raising interest rates to contain inflation, and this decision was mainly driven by concerns about the US economy, which is experiencing credit risks and recession fears.
Therefore, the Fed is expected to be less aggressive in its upcoming policy rates, which was seen as one of the key factors that are leading to Bitcoin’s upward rally.
Furthermore, the upticks in the Bitcoin price were further bolstered by the ongoing instability in the US banking sector, which has highlighted the significance of decentralized finance, where people can have control over their own money without involving banks.
Therefore, more investors will likely choose Bitcoin as it operates outside traditional banking systems.
Shanghai Upgrade
As previously stated, the value of Ethereum has surged by more than 10%, hitting its highest level since May 2022. Meanwhile, Bitcoin has increased by more than 3% and is in the direction to end the week on a positive note.
This is due to the recent Shanghai upgrade, which allowed Ethereum staking withdrawals after a two-year lock-up period. This has sparked optimism among investors, which was seen as another key factor that has contributed to the surge in Bitcoin’s value.
It is worth noting that the Ethereum Shanghai hard fork, also known as the Shapella upgrade, is part of the ongoing effort to make the Ethereum network more energy-efficient. It moves the network from a proof-of-work consensus mechanism to a proof-of-stake mechanism, which uses less energy.
Crypto Market Climbs: Bitcoin Surge, Inflation Data Fuels Growth
The global cryptocurrency market has been on the rise and is expected to finish the week on a bullish note. This was evidenced by the continuous rise in the leading cryptocurrency Bitcoin, which reached almost $30,856 levels, and Ethereum, which rose by more than 10%.
At the time of writing, the global crypto market cap was $1.28 trillion, representing a 4% rise in 24 hours.
On the data front, the US consumer price index of all items, which measures inflation, was at 5% at the end of March 2023. This is the lowest it has been since May 2021 and is slightly better than what was expected by the market.
However, it is still higher than the target levels set by the US Federal Reserve. This news has had a positive impact on the market, including on Bitcoin, which is known for its ability to act as a hedge against inflation.
With inflation appearing to be slightly more under control, investors may feel more confident in investing in Bitcoin as a way to protect their assets.
Bitcoin Price
During the US trading session, Bitcoin’s price experienced a minor bearish correction, falling from $31,000 to $30,200. On the 2-hour chart, the BTC/USD pair completed a 61.8% Fibonacci retracement at the $30,225 level. If candlesticks close above this level, it could potentially drive Bitcoin’s price toward immediate resistance levels of $30,500 or $30,900.
On the same 2-hour chart, the BTC/USD’s immediate support is at $30,225, and breaking below this level may lead to further selling down to $29,990 or $29,750.
Both the RSI and MACD indicators are entering the sell zone, but the 61.8% Fibonacci correction could trigger buying above the $30,200 mark.
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Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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