[Update] News Bit: Bitcoin Breaks Past $30K, Achieving Highest Price Since June
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Update: Bitcoin has breached past $30,000
- Bitcoin’s value surges, nearing the $30,000 milestone and reaching its highest price since early June, amid easing banking crisis and increased investor optimism.
- Ether and crypto-related stocks also experience gains, and Coinbase and MicroStrategy stocks increasing by over 7.5%.
- Investors and market participants await U.S. March CPI report and quarterly earnings, which could impact Bitcoin’s future direction and determine the U.S. Federal Reserve’s stance on inflation.
Surge in Bitcoin Price
Bitcoin (BTC) experienced a significant surge, nearing the $30,000 milestone and reaching its highest value since early June. The largest cryptocurrency by market capitalization witnessed a nearly 4% increase within an hour, bolstering investor optimism. However, analysts found it challenging to pinpoint a specific catalyst for the price movement. At the time of writing, Bitcoin was trading at $29,616.
Potential Factors Behind the Increase
The recent upswing in Bitcoin’s value could be partially attributed to the easing banking crisis, as well as growing confidence in the cryptocurrency’s potential. Edward Moya, a senior market analyst for Oanda, suggested that the spike might have been driven by crypto traders expressing frustration over a New York Times article that criticized Bitcoin’s energy consumption.
Ether and Crypto-Related Stocks Also Gain
Alongside Bitcoin, Ether (ETH) also enjoyed a boost, crossing the $1,900 level before retreating. The majority of major cryptocurrencies registered gains, with the CoinDesk Market Index, a measure of the overall crypto market performance, rising by 2.3%. Crypto-related stocks, such as Coinbase (COIN) and MicroStrategy (MSTR), both increased by more than 7.5%.
Anticipation for March CPI Report and Quarterly Earnings
Investors and market participants are closely monitoring the upcoming March Consumer Price Index (CPI) report to gauge whether inflation continues its downward trend. In February, US inflation decelerated to 0.4% from 0.5% a month earlier, and 6% year-over-year from 6.4% in the previous month. A decline in the CPI report could further propel Bitcoin’s upward trajectory.
Investors are also anticipating the first wave of quarterly earnings, with banking giants JPMorgan Chase, Wells Fargo, and Citigroup scheduled to release their results. Analysts predict a predominantly bleak quarter, particularly for the struggling financial services sector.
Bitcoin as a Reliable Store of Value
Bitcoin’s recent surge has led some experts to consider it a reliable store of value, demonstrating a decreased correlation with equity markets since 2021. This shift has prompted investors to increasingly view Bitcoin as a “risk-off” asset. Nevertheless, the sustainability of the surge remains uncertain, with technical analysis suggesting that Bitcoin could encounter resistance at the $30,000 mark.
Impact of March CPI Data on Bitcoin’s Future
The U.S. Bureau of Labor Statistics is set to release the March CPI data on April 12, which is expected to show inflation decreasing to 5.1% from 6.0% year-over-year. This data will be crucial in determining the Federal Reserve’s stance and potentially impacting Bitcoin’s price direction.
This article is published on BitPinas: News Bit: Bitcoin Breaks Past $30K, Achieving Highest Price Since June
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.