Three Reasons Why Bitcoin (BTC) Price Rise May Continue in the Short Term
TL;DR
- Bitcoin’s price has increased significantly and some indicators show that this rise continues.
- Expectations regarding the upcoming Federal Open Market Committee (FOMC) meeting and the Fed’s interest rate decisions are poised to impact Bitcoin’s value, with experts predicting potential bullish outcomes.
Bitcoin recently caught the green wave of the cryptocurrency market, with its price rising to a three-week high of almost $44,000. In the following lines, we will examine some important metrics and upcoming events that indicate that the uptrend may continue in the coming days.
According to CryptoQuant, Bitcoin exchange net flow was predominantly negative last week and drew a large red candle today (January 30). Gear shift The shift from centralized exchanges to self-custodial methods is considered bullish as it reduces immediate sales pressure.
BTC Exchange Netflow, Source: CryptoQuant
Also data demonstrations He said BTC’s open interest has increased since January 23 and is now over $10.5 billion. This development has historically affected the asset’s increased volatility in the short term.
Finally, the price of the primary cryptocurrency may be positively affected by the Federal Open Market Committee (FOMC) meeting scheduled for this week. The US central bank is expected to keep interest rates unchanged at 5.25%-5.50% and even begin to return to its aggressive anti-inflationary policy.
Recall that his actions have led to serious volatility for Bitcoin over the last few years. Value of the asset immersed repeatedly after interest rate increases or I headed north when there is no change in the criterion.
Many experts, including Fundstrat’s Tom Lee, have argued that the Fed is raising interest rates for this cycle. Others like former White House official Anthony Scaramucci and CEO of Galaxy Digital Mike NovogratzI believe the end of this policy will be a major bullish factor for BTC.
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