Why is Bitcoin Price Up Today? Here Are the Major Fueling Factors
The post Why is Bitcoin Price Up Today? Here Are the Major Fueling Factors appeared first on Coinpedia Fintech News
After opening the week on a positive note on Monday, the crypto market continued with a bullish outlook during the early Asian session led by Bitcoin (BTC) on Tuesday. The sudden price uptick caught a majority of short traders by surprise, with more than $77 million liquidated from short traders in the past 24 hours.
With Bitcoin’s price closing above the 50 daily Moving Average (MA), the flagship coin is now headed to retest the resistance/support level around $44,450. A successful breakout could lead to a fresh rally towards $48k and beyond, but a rebound could easily create a reversal pattern through head and shoulder (H&S) formation.
Top Reasons Crypto Edged Higher Today
High Impact News Ahead
Having established that the crypto market experiences heightened volatility amid the Federal Reserve monetary policy statements, Bitcoin and Ethereum led the industry in increased bullish volume. Notably, the United Fed will release the interest rate statement on Wednesday, with economists forecasting a hold.
Furthermore, the Fed recently announced that the rate hikes are over with the ease of high inflation without a huge impact on the employment rate. Consequently, Fed chair Jerome Powell indicated that it is quintessential for rate cuts by the end of this year, which has been described as bullish for Bitcoin.
Increased Crypto-Buying Pressure
As #Bitcoin's & #Ethereum's respective supplies have continued moving off exchanges after the #ETF approvals, an interesting development has been #Tether seeing nearly 4% of its available supply come back to exchanges in 5 weeks. The increase in buying power implies
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— Santiment (@santimentfeed) January 30, 2024
According to on-chain data analysis provided by market intelligence platform Santiment, the supply of Bitcoin and Ethereum on centralized exchanges has declined since the approval of spot Bitcoin ETFs in the United States. Additionally, the firm highlighted that the supply of stablecoins led by Tether USDT has increased, thus implying higher buying power.
General Crypto Cash Rotation
After hitting a psychological range high and low of around $49k and $38k, respectively, after the approval of spot Bitcoin ETFs in the United States, Bitcoin price is expected to continue in the same range. At the same time, the altcoin market gradually breaks out. Moreover, the US SEC has about three months before the spot Ethereum ETFs decision deadline.
