After the U.S. CPI data was released, crypto assets are experiencing a modest rebound in the markets, with Bitcoin regaining 3.5% of its value lost mid-week. The price of Bitcoin has surpassed the $70,000 threshold following this uptick, having dipped below it earlier in the week.
Crypto assets are experiencing positive growth right now as the trading volumes for major assets decrease, and decentralized finance (DeFi) sees notable surge. Bitcoin has seen a 6.63% increase in value over the past week, but its monthly gains remain at just 1%.
Bitcoin Bulls Buy The Dip
Currently, the asset is priced at $70,593 in the markets, representing a 12% increase in trading activity. This surge in demand follows investors’ optimism, or “buying the dip.” On various social media platforms, some users predicted price drops due to economic conditions and urged others to take advantage of the situation by purchasing before the upcoming halving event.
In 2021, Bitcoin reached a price peak of more than $72,000 due to increased investment in spot Bitcoin ETFs. Excited traders, anticipating further growth, bought the dips in preparation for the next price rise. However, on April 10, the Consumer Price Index reported an unexpected 3.5% inflation rate increase in the US, casting doubt upon the predicted interest rate reduction.
Macroeconomic Factors Trigger Crypto Assets
President Biden indicated earlier that interest rate reductions could occur towards the end of the year. However, following recent data releases, it now seems that these cuts might be postponed. Initially, this news sparked a sell-off among traders. But looking ahead, there’s optimism about potential benefits and the upcoming Bitcoin halving event.
Macroeconomic influences remain a significant focus for markets, with traders and other investors keeping a close eye on current trends while considering historical patterns for future indicators of investor sentiment, often referred to as “Jr sentiment.” Concurrently, crypto assets have been following suit, exhibiting similar price movements to traditional stocks.
Data from the blockchain indicates a rise in investments towards altcoins, with Ethereum increasing by 0.5% to reach $3,540. Additionally, Binance Coin, Solana, and Dogecoin experienced growth of 1.4%, 0.9%, and 3.67% respectively. The combined market value has surged by 2.93% to hit $2.54 trillion.
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2024-04-12 08:26