Bitcoin prices have risen beyond the $30,000 threshold for the first time since June 2022, bringing the largest cryptocurrency by market capitalization closer to the point where it may make a significant breakthrough.
According to CoinMarketCap, the price of bitcoin increased by 6.2% in the previous day to trade above $30,100 at 5.01 a.m. Eastern Time on Tuesday. Ether, the second largest cryptocurrency in terms of market cap, increased in value by more than 3% in the past 24 hours and is now trading above $1,900.
Peter Brandt, a seasoned trader, alerted the Bitcoin community on Twitter to the potential “breakout” as the cryptocurrency was approaching a crucial resistance level of $30,000.
— Peter Brandt (@PeterLBrandt) April 10, 2023
Tina Teng, an analyst at CMC Markets, a financial services organization, stated in a video that was tweeted out on Tuesday that “the reason behind the rally is probably because the odds for the Fed to further scale back its rate hikes have been dramatically strengthened after the bank turmoil in early March.” Teng made these comments in response to a question about the source of the rally.
If the current upward price trend is maintained, according to Teng’s technical analysis of Bitcoin’s chart, prices will soon approach $35,000.
— CMC Markets ANZ (@CMCMarketsAusNZ) April 11, 2023
Even after the failure of Silicon Valley Bank, the Federal Reserve Board moved through with its plan to raise interest rates for the ninth consecutive time in March as part of its ongoing effort to curb inflation. However, this is making people more concerned about the possibility that the economy may slow down to the point where it would enter a recession. This is giving rise to the notion that the cycle of rate hikes would soon come to an end.
Bitcoin’s value has increased by over 80% so far in 2018, while ether’s value has increased by approximately 60% during the same time period.
Bitcoin and ether hit all-time highs when they surged past $69,000 and $4,800, respectively, in November 2021.
April 11 2023, 5.17 a.m. ET: This story has been updated to include the latest bitcoin and ether prices.