The Bitcoin price has again made a steep rise and has risen to a value of over $ 24,000. This continues the upward trend of the last few weeks. The mood in the market seems to be brightening. What are the reasons for a rising Bitcoin price and could we see another bullrun in the next few months?
What happened to the Bitcoin course?
The Bitcoin price rose very suddenly to a value of over $ 24,000. Previously, the price ranged from $ 22,000 to $ 23,000. In recent weeks, we have already seen a slight recovery in the Bitcoin price. At that time, the price was already above the $ 24,000 mark for a very short time. Now the Bitcoin price has been able to stabilize around this mark in the last few hours.
In recent months, we have seen massive losses in cryptocurrency. From $68,000 in November, Bitcoin briefly dropped below $19,000 in June. Since this drop below the $ 20,000 mark, Bitcoin has been able to stabilize again. But we are clearly in a bear market and massive profits are to be expected rather less at the moment.
What caused the increase in recent weeks?
In recent months, the increases in the key interest rates of central banks in particular have caused the markets in general and the crypto market in particular to suffer. The interest rate increase will make risk investments in particular less attractive. Many institutional investors in particular sold their Bitcoin holdings.
Inflation has been a big issue in the US and Europe so far. Normally, this should be an advantage for a cryptocurrency like Bitcoin, as it can act as a kind of inflation protection. But inflation got so out of control that financial markets took a hit, which also hurt Bitcoin and the crypto market.
Meanwhile, the markets have adjusted to higher interest rates. The last increase in the key interest rate by the US Central Bank FED by a whopping 0.75 percentage points rather caused prices to rise. The markets appreciate that central banks should take inflation seriously. Falling energy costs and good data on the labor market from the USA provide further optimism.
Is the Bitcoin price increase sustainable?
The previous increase about 2 weeks ago came after the increase in the key rate by 0.75%. It was a relief, as interest rate increases in recent months have caused the markets to decline recently. But can the Bitcoin price also keep the uptrend in the next few weeks and continue to rise?
Much depends on macro developments in the financial markets. While the Bitcoin price has moved in the opposite direction to classic markets in the first few years and this is also due to the nature of the decentralized currency, Bitcoin has moved more with the macro developments on the markets in the last 2 years. If the markets continue to recover in the second half of 2022, the Bitcoin price could rise further.
How high can the Bitcoin price rise again?
In a bear market, we have seen rather less strong price increases in the past. Furthermore, a bear market always lasts several years. But it is not excluded that the Bitcoin price may rise again in the next few months. Because due to the dependence on the markets, Bitcoin could also rise more strongly with the macro markets this time.
However, an increase to new all-time highs is extremely unlikely. This would require a real new bull market. If we look at the last cycles of the crypto market, then this should only come back after the next Bitcoin halving in 2024. Until then, however, smaller climbs are possible. Die $30,000 could fall in the next few weeks. Even increases above $ 40,000 seem to be possible in the best case.
Is it worth investing in Bitcoin now?
At the moment, the Bitcoin price seems to be at the lower end of the price range for the current cycle. We are just coming out of a massive price drop over several months. A rebound seems natural. Furthermore, there are the external influences of the rising financial markets.
By the next bull market at the latest, however, the Bitcoin price should rise massively again. Therefore, a regular investment in the Bitcoin should be worthwhile in the next few months. Because the price of Bitcoin could hardly be so low in the future.