Bitcoin’s recent surge in value has left many wondering: is the world’s most famous cryptocurrency finally making a comeback?
Bitcoin has hit its highest levels since July, reaching $31,000. This rally is not solely driven by optimism surrounding a spot Bitcoin ETF, but rather a significant reversal in the dollar and 10-year Treasury yield. If investors continue to prefer risky assets over Treasuries, Bitcoin could continue its rally. However, positive ETF news alone will not be enough to sustain Bitcoin’s growth; a peak in rates must be confidently priced in. While there is still a risk that investors may favor stocks over cryptocurrencies, as long as the Fed is done with its hiking cycle and hopes of a soft landing remain, the backdrop for Bitcoin should be positive.
If Bitcoin manages to rally above the $31,500 level, there is potential for bullish momentum to support a rally towards the $35,700 region, which represents the 38.2% Fibonacci retracement level of the collapse from record highs to the current cycle’s low.
To truly reignite the crypto world, it will require new money becoming highly committed. Endorsements from influential figures like Michael Saylor, Elon Musk, or Cathy Wood may not be enough to attract new investors, as Bitcoin skeptics are unlikely to change their tune anytime soon.
Some Bitcoin supporters believe that the next halving, which is 162 days away, could potentially be the catalyst to push Bitcoin back above the $40,000 level. However, several factors need to align positively for the crypto market, although it seems that regulation is not likely to kill the space.
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Sources:
– Bitcoin hits $31,000, highest levels since July
– Michael Saylor’s MicroStrategy Bitcoin position turns positive
– Major bond market yield reversal keeps cryptos broadly supported
