Today, Bitcoin, the leader of the cryptocurrency market, experienced an unexpectedly big jump. Bitcoin’s value rose from $69,000 to $71,627, marking an all-time high for the cryptocurrency world’s most popular asset. However, the emotional and logical confusion behind this sudden rise makes investors uneasy.
From a short-term perspective, there is significant negativity and skepticism in the market. This rapid rise of Bitcoin has some investors worried that prices may be inflated, which strengthens the prediction that a correction may occur in the near future. Especially at a time when Bitcoin’s price movements are sudden and uncertain, investors are uncertain about the future.
However, some of the investors continue to rely on Bitcoin, maintaining their long-term strategies. This approach, called the “HODL” strategy, aims to hold Bitcoin or other cryptocurrencies for the long term and be resistant to price fluctuations. However, there is growing concern that if the $70,000 support level is broken, prices could quickly fall to $63,000 or even lower.
Currently, it is a challenging time for Bitcoin as selling pressure is being felt at key price levels, while there is also persistent buying pressure by exchange-traded funds (ETFs). This situation causes continued uncertainty and fluctuations about the future of the market.
The recent impact of ETFs on the Bitcoin market has surprised many and even caused long-term Bitcoin enthusiasts to re-evaluate their price predictions. Some now think even $100,000 is a low estimate in the short term. However, one must deal with the concern that this rapid increase could cause Bitcoin to peak earlier than expected, making the next bear market even more unbearable.
Important reports on the US economy such as the February Consumer Price Index (CPI) and Producer Price Index (PPI) will be published soon. These reports could influence the Federal Reserve’s decision on interest rates, and things are becoming even more critical for Bitcoin as miners try to make the most of high prices ahead of April’s halving.
As this week begins, we’re tracking how much Bitcoin spot ETFs are buying. Although major investors are extremely excited about these developments, there are also concerns that ETFs may not be as popular in the future. This means that uncertainties about the future of the market will continue.
Apart from ETF interest, Bitcoin price is also closely associated with policy discussions of the Bank of Japan (BOJ). According to Reuters reports, BOJ’s policy changes are expected as confidence in low interest rates is shaken. Following this news, stocks experienced a slight decline in Asian markets, while Bitcoin prices began to rise in Asia.
According to Bloomberg’s analysis, speculation that the BOJ may increase interest rates strengthens the possibility that the bank may raise interest rates for the first time since 2007. These developments show that the balances in financial markets have changed and investors should be more careful.
You can follow the current price movement here.
