recently surpassed $50,000 Bitcoin (BTC) The rally reversed on Tuesday. This change comes after the January Consumer Price Index (CPI) in the US exceeded expectations at 0.3%, causing a wave of weakness in financial markets.
According to the CME FedWatch Tool, the market currently sees only an 8.5% chance of a rate cut in March, while the probability of a rate cut in May has fallen below 40%.
Monday’s upward move was discussed in an interview with Mercuryo Senior Counsel Adam Berker. Berker explained that “multiple factors are working together to influence the BTC price rise to $50,000 and the ongoing dynamics in general.”
Berker noted that a significant portion of the market sentiment can be attributed to news surrounding the potential approval of Ethereum-based ETFs:
“We have seen a similar effect with Bitcoin ETFs in the past. Many people were waiting for this to happen, so the market, fueled by news about this, accelerated until it reached a certain point. “Following the approval of BTC ETFs, a new source of fuel was needed to continue the positive trend, and news of the possible approval of ETH ETFs became that fuel.”
Berker also emphasized that the approaching halving in April is an important factor for Bitcoin and stated that this “greatly affects the general mood and price increase in the market.”
Analsit drew similarities between current dynamics and market conditions in 2020:
“At the time, the market was just gaining momentum, the price of Bitcoin was rising, and there was a lot of discussion about whether the 2020 halving would lead to surpassing the previous all-time high.
All these factors determine the general tone of the market, and this situation accelerates as old news encourages new ones. Although negative events such as Genesis’ liquidation of GBTC holdings put pressure on this growth, this pressure is not very strong compared to the inflow of funds that have occurred so far. Therefore, we can expect BTC’s positive trend to continue.”
*This is not investment advice.
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