BitcoinDespite the market turmoil caused by the recent higher-than-expected Consumer Price Index (CPI) inflation data, it shows unwavering resilience. While traditional markets are struggling, Bitcoin remains stable with unique factors affecting its ecosystem.
What is the Source of This Resilience in Bitcoin Price?
While there is a major correction caused by the US inflation report, Bitcoin’s resilience is dazzling. Market analyst Tony Sycamore of IG Australia Pty recognizes this stability of Bitcoin but cautions that Bitcoin could fall below $40,000 and experience a 10% correction.
Bitcoin’s strong stance, BlackRock Inc. and Fidelity Investments, supported by launches through private US exchange-traded funds (ETFs). These ETFs have generated a combined net inflow of approximately $3.3 billion since their launch on January 11, further strengthening Bitcoin’s position.
Halving Effect in April and Expectations Raising Market Morale
Bitcoin’s halving, which will take place in April, is important as it has caused supply to decrease and prices to rise throughout history. Caroline Mauron, co-founder of Orbit Markets, states that the approach of the halving and its effects will raise market morale in a few weeks, leading to a rise towards the $ 50,000 target, which is an important psychological level.
On-chain data provider Santiment suggests that there has been a change in investor sentiment with the recent transformation in BTC price, which could lead to significant fluctuations in the market. Additionally, Santiment analysts state that past CPI reports coincide with medium-term trends in the crypto market, indicating that a repeat of history may occur.
The combination of institutional support and the upcoming halving reinforces Bitcoin’s resilience to global economic fluctuations. These factors signal how Bitcoin and the overall crypto market may evolve in the coming months, even in uncertain times.
