Bitcoin touched $25k after positive developments in Asian Markets. Is it an indication of the next bull rally?
Bitcoin has gained over 13% this week. The weekly rally staged by the world's largest cryptocurrency by market cap touched the $25,000 mark on Thursday and settled at $24,600 after the weekly market closing. Part of the bounce back has been due to a so-called "short squeeze" that has resulted because of more short liquidations than normal. The Bitcoin hash rate also touched an all-time high of 391.94 EH/s.
In the recent event, the rise in prices among cryptocurrencies this week has diverged from the price action of Asian and US stock markets. The investors appeared to have a major appetite for risk and seemed to shrug off concerns over more rate hikes from the Fed after hotter-than-expected US CPI data, which shows inflation at 6.4% i.e higher than expected 6.2%.
Despite the hot CPI data and speculation of the Fed's more upcoming hikes, stock markets are performing well. The FTSE 100 closed over 8,000 points this week, while S&P 500 closed with 4,079 pts. The Volatility Index is around 20.02, and seeing the positive sentiment among investors and financial institutions, we can expect a bull rally ahead. At the time of writing this article, Bitcoin is trading at $24,570 with a market capitalization of $474 Billion.
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