Topic: Bitcoin hits 20,000$ again, what is the reason? (Read 685 times)

It's a very good thing to see Bitcoin rising since the beginning of this year, and it's also worth noting that the buying was accurately predicted by many, thanks to the inflation reports that made it go haywire between January and February. However, many might not know what makes it reach $27k as I'd read a lot of theories that are not even the cause.

The issues of the US banking system with the bad Average hourly earnings and Unemployment report is making all the risk-on market rise against the USD. These have exposed the fragility of the US economy, who knows to what extent would it help Bitcoin?

I was motivated by the desire to see the Bitcoin price rise at the beginning of the new year. The price of Bitcoin has increased significantly in a few days. Currently Bitcoin price has crossed $27000 and the next target will cross $30000. The market is likely to grow substantially towards the end of the year. And I think this is the best time to invest in Bitcoin. If the market rises later, then there is not much desire for profit, so it will be profitable to invest now.

The price of bitcoin will always fluctuate, this week the price rose by more than 35% and March recorded a good record, namely the price has risen more than 20% in a day, but we must be aware that prices can drop at any time so we don't be surprised if the price returns to $ 20 k or below.

Even though the price is currently rising and is close to $30k but there is always a chance to fall, when the price reaches $68k at the end of 2021 many are boasting that bitcoin will not fall again and will soon reach $100k, but the price continues to fall and drop more than 70 % at the end of 2022 or a year after it happened, As investors, of course, we must always be alert.

there will always be a decline again even though it has increased, agree with you that it is very difficult to be able to accurately predict the movement of btc, but you can see from the trend that has been done. btc will always repeat everything that has been done once every 4 years, so ahead of the halving period there will certainly be surprises, and there is only one year left.
prepare yourself to keep saving and holding the best coins until you touch the renewable ATH.

I think the future will be a lot more bright because CPI will keep dropping, and we are going to just end up with a lower interest rate in the near future as well, just like how it went up, it will also start to go back down as well when the time comes and when that happens bitcoin will skyrocket for sure.

Too many people sold their bitcoins and started putting their money in savings, most of those people will stop doing that and start putting their money back into bitcoin when the rates are much lower. I know it is not an easy subject and I know it will take some time for this to happen but it is just simple economics and it will eventually happen and I will have some coins before it happens.

Bitcoin may go below 20k, or we will never see 1BTC=20k again, bitcoin will go up from here, anything can happen, and no one can predict. Whatever happens, don't try to find a reason or ask why, just think that bitcoin is always moving, and that's completely normal.
Bitcoin only has 2 uptrends and downtrends, so always prepare yourself with a plan and always have a solution in any situation.

economic indicators regarding the economic crisis this year still say that not all have recovered. maybe some have been able to slowly get through, but there are still many countries that estimate they are trying not to sink.
so expecting bitcoin price to be probably the same as last year and trying not to get any worse is certainly a very good thing.
but if the economic crisis can be resolved more quickly, it is not impossible that in the middle of the year there will be an increase in bitcoin to lead to the next halving period.
currently moving at a price of $20K+ is absolutely amazing and hopefully that's a good indication.

BTC price started to decline in late 2021 and in 2022 it went from bearish to more bearish for the whole year. There are some unexpected events that help to further this bearish trend. Since it has been bearish for a long time, naturally we can expect its bullish trend. Moreover, just a few days ago when we recognized that the CPI had dropped to 6.5% in December from 7.1% in the previous month, we started to see the BTC price go up. This situation is not unusual. However, one has to rely on the CPI results of the next few months to get more certainty about where the market will go in the future.

So it means that the US economy is recovering as the USD exchange is falling? as far as our local currency though, yeah I've seen the price going down as well with some points.

But it's interesting where this pump will go down, maybe we can't pinpoint the real single reasons, CPI, or miners or the hashrate or simply investors putting their money again. So yeah, will it go to $25,000 before heading for a correction. What if there is a pivot as far as the CPI numbers again for the next month?

Block halving is next year so we should be preparing already.

Another thing that could be the reason is if you noticed, these past few days especially when the year 2023 started, the value of the United States Dollar (USD) started to fall also while the cryptocurrency market or even stock markets started to rise.
There are a lot of reasons for me, especially since the Bitcoin block halving is fast approaching, it will happen next year, so for me, that's one of the reasons too why we started to pump recently.

I'm responding directly base on the subtitles or subject. Bitcoin can hit to twenty thousand this year and even above such specific amount, but the problem is that after ascertain such value of twenty thousand will it be same continuously going to be maintained such increment. Basically the rising of Bitcoin is dependable by the gravitational force of the investors. So therefore what we are making here is a speculation of Bitcoin, which we don't really know when the price will rise and when the price will fall in value.

2023 will be a very important year for the cryptocurrency market, with many predicting that the industry is on the verge of a boom. Recent evidence suggests that the world's leading cryptocurrency may experience a surge in value in the middle of the year.

Analysts point to the global macroeconomic environment, stock prices, inflation, Federal Reserve data and possible recession as catalysts for the upside move. High inflation and lack of trust in the current financial system will fuel these factors, so don't miss the Bitcoin Bull Run.

That 1 year passed is not a very long time for me, I was thinking about the 2018-2020 bear season, that gonna be considered very long...That is why we should not be confident enough that this current pump will be an indication of recovery going to bull season. We can't just forget that we already reached almost $25k last year but it drops back again hitting the bottom price. Whatever will be the reason for these pumps, I did bother not to dig into it - I was just thinking about the volatility of the market.

Bitcoin has no inflation because no additional coins can be created. This year we are likely to see a rebound because the price has been falling for a very long time. But I wouldn't be sure about the long term, because the world situation is still not stable. I think we are going to see a fall yet.

Bitcoin has indeed hit above $21k in January, this is not new to me as the new year comes with new possibilities. If you remember, last year was turbulent for the coin as inflation and global economic woes plagued it. Now, the inflation figures are now subsiding, and so is the world economy having more hope daily. These are the major reasons why BTC is appreciating in value, and more are to be seen because the market sentiment through technical analysis is now bullish in the long-term disposition.

i said $21k but thats rounded. i think its more of a $21.5k wall lastweek-this week

as for why they won in december..
because they put a bet(futures) that the price would be under $17k by year end 2022.. and it was. so they won
it was only under $17k becasue they also as a side investment used another stash of funds to arbitrage the spot markets to keep it down. to ensure their win.

and since they got their win they no longer needed to keep their stash arbitraging the price below $17k so they stopped thus releasing that wall..
now the new wall is at ~$21.5k

..
2022 was a slow bear.. starting from like MAINLY april 2022 where the whales done their fortnightly/2monthly step downs using method i said but lowering the resistance wall each period

i feel we will see a slow raising step of the same fortnightly-2month step UP where whales control the spot market to get their bet(futures) wins per period, on the way up

Why do they win when price stay below 17,000$?

Today has started with a nice new fluctuation above the 21,000$'s line. Let's see if the wall you say will be kept by whales, preventing BTC from breathing above the resistance level. I like to see the day begins on bullish mode!

Alright. Thanks for clarifying.

its got nothing to do with the CPI reports or other social drama of fiat

the real reasons

december had an artificial whale wall holding the spot price down below $17k because whales had "futures" contracts on the futures markets, whereby, if at year-end. when many contracts expire and if price is below $17k= they win.. and so they held the spot price below $17k to win. and they did.

the new year began so they removed the whale wall.. to allow free flow of more normal speculation..
and that was it

and new contracts this week show a new artificial spot market wall of $21k where they dont want to see prices go above $21k

when those contracts expire they will remove that whale wall also

its not rocket science

when you see a chart have a weirdly unnatural flat-line(zoom out if you cant) it keeps hitting. explore the reasons for that wall/line

Lighter DXY, everything priced in dollars moves with a lighter atmosphere to markets.   Dollar index has been on ski slope since peaking late September, there was an exceptional event both in Sterling and the YEN at the same time together with Europe facing war and an energy crisis for weaker EURO it meant Dollar at highest nominal values since the start of the century.
   I'd say the gradient since the peak has been in average quite consistent and linear in decline.   YTD in 2023 we've had some further data in that inflation has receded and this raises the hopes of a market for a lighter touch by the Federal reserve.    Crypto is quite different to dollar politics but when we discuss trillions and movements quite large, it displaces the movements of almost anything else I think.

I do agree that things are looking like they are slowing down and yes that could be one of the reasons why we have gone up as well. Economy looks like it is getting back on track, which makes a lot of people happy, and I am sure that it is going to make quite a lot of people to invest because they think the economy is recovering.

I am not saying that it is a very good thing and it will keep going like this, unfortunately in our world economy could always go worse at any moment but if it keeps recovering like it has so far, then I am pretty sure that it s going to be doing very well in the end. This is why I believe that we should be focusing on making a bit of a profit while we can.

Yes, it seems to me too that bitcoin growth is due to the fact that inflation forecasts are much lower than in 2022. It's not just bitcoin that has started to rise, but other stock markets as well. I don't rule out that the fall could happen again, but I see 2023 as a lull in the past economic storm

Not very fast in my opinion, the current price shift mode has not yet shown its full strength in holding back the recovery process, it is necessary to compare the current rally with the rally of the next few weeks. If this recovery process continues, the main factor for bitcoin is progress, because the cycle has started to run according to the time loop before reaching ATH.

Yes, it hasn't been that special in the last few days, as currently bitcoin is still stuck around $20,000. Although the price increase has started towards the recovery process, it is not clear exactly what motivations make bitcoin tend to be bearish, but it seems that the four-year cycle factor is one of the drivers.

I think it is what we all needed because there was a lot of members here starting to get anxious about the long downturn. Now that we have had a confidence boost it might prevent people from selling their btc and causing further drops. I do not care what the world bank says they are often wrong and sugar coat the fiat problems that have plagued us for years.

Whatever the reason behind the price increase, I still believe bitcoin can still hit $25k in this bull run, but what happens after that is the question. If it can hold above 25k, then I think those who are waiting for bitcoin to drop to buy need to recalculate their plan, but if bitcoin falls back, it could be a big drop and will make a new bottom.

The economic crisis left many people struggling, limiting spending, and not having enough money to invest in the market, that's why last year I heard about when bitcoin price fell and could not rise. Currently, inflation shows signs of decreasing, but generally, our life is still tough, so investing at this time is not reasonable. Except for those who are economically well off and have started accumulating since last year.
Currently, on the forums, social networks have not shown any good reason for the price increase, and I only think that reporting about CPI is the most reasonable.

Wasn't it something natural? The drop off to 16k I believe was just due to the FTX fiasco (which lasted longer than I thought imo). Before it happened I'm pretty sure the price jumped back up to 20k already, but then the whole issue happened, went down, and it wasn't really showing any comebacks to 20 until now. It's also why I think we're not really going to steamroll or anything through the market after this point, maybe up to 22k at most then it'll go back down to 19,20 and again do its usual up and down movement. Might be more depending on what's happened though, not really updated or anything.

How are you guys seriously asking the reason BTC just had a big jump?

Why don't you look at the charts input the day FTX went down was when BTC crashed.

Now look at the charts again with the day FTX finds billions of dollars in assets, BTC explodes back up.

"Finding" billions in assets for people who used FTX is a huge deal.  Basically everything reversed if you check the charts in relation to FTX.

This is long overdue and many are waiting for this, now its about time and whatever the reason is hodlers are more happy to welcome it. Though the RSI right now tells its overbought already so there might be another correction but hopefully its not that big so we can finally reach the peak slowly but surely. Good thing as well to see altcoins pumping, they have to follow the trend of Bitcoin to attract more investors as well. Bull is about to come, hope everyone here are able to prepared for this.

The market is indeed normalizing from the many challenges that dragged the market down in the first place, hopes are beginning to return and Bitcoin investors are beginning to rebuild their motivation toward Bitcoin and other cryptocurrencies after the disappointment that followed the crisis as it involved FTX, Luna crash and all the other bad incident that rock the market in the last quarter of 2022.
The price of bitcoin made a sharp recovery in the early days of this week without any significant event to point to as the reason for the price recovery.
So therefore it can be said to be a natural recovery movement for bitcoin, and this show the positive outlook for the remaining days ahead in 2023.

I think it's a combination of factors driving the current bullish trend in the bitcoin market. One of the main factors is institutional adoption. We have seen more and more institutional investors entering the market, which is increasing demand for bitcoin.

Additionally, the current economic uncertainty caused by the pandemic has led many people to seek out alternative investments, such as bitcoin, which is seen as a safe haven asset. Furthermore, the upcoming halving event in 2024 is also causing investors to anticipate future growth in the bitcoin market. All these factors together are contributing to the current bullish trend in the bitcoin market.

There are several factors that could be contributing to the recent price increase of Bitcoin. One possibility is that investors are becoming more confident in the long-term potential of the cryptocurrency. Despite the volatility and uncertainty of the past few years, many experts believe that Bitcoin has the potential to become a major player in the global financial system. This increased confidence could be driving more investors to buy in, leading to a surge in demand and an increase in price.

Another possible factor is the growing acceptance of Bitcoin by mainstream financial institutions and businesses. Major companies like PayPal, Visa, and Tesla have begun to accept Bitcoin as a form of payment, and more and more institutions are beginning to invest in the cryptocurrency. This increased acceptance could be making Bitcoin more accessible and appealing to a wider audience, leading to more demand and a higher price.

The lowest minimal price of bitcoin is over as it has hit 20k,I guess the less inflation in the US,has add to the increase in price of bitcoin because so many people can have enough for themselves and think of investing on a valuable asset like bitcoin to secure their funds,last year has taught so many people lesson due to high rate of inflation.

I don't think bitcoin price will rise higher than 21k and if it does, then it means that the bullish market will last for a while but we shouldn't be so excited, we should use this opportunity to accumulate more bitcoin,because the price is unpredictable.This is indeed a surprise in the new year after a frustrating bearish market.

It is true inflation should promote cryptocurrency use but the action taken by the federal reserve tho to slow the inflation has a negative impact on the world economy and bitcoin normally. It is curious to see how the price went these days and hopefully we can see it consolidating at a higher level.

I don't think this bull run is due to the growing demand for bitcoin. If bitcoin stopped rising and then fell, we cannot say that the demand for bitcoin has decreased if the price of bitcoin has not increased. That's not a good reason.

But you are right, why care much about the reason? We just know bitcoin is going up, and we have been waiting for this for months, and now it has come true. Enjoy this precious time because no one can tell if bitcoin will continue to rise or fall tomorrow.

Unstoppable yes. But you are talking about price, aren't you? That is definitely stoppable haha.

Definitely nice to see us above 2017 ATH and yes, I still think US inflation sentiment has a lot to do with that but not holding my breath just yet.

So much to wait for. World Bank insists we are heading for worse and I won't mind being asked to wait a bit more for a true rally. Still, nice to have some relief so early in the year.

Currently Bitcoins are at 20900 USD and it’s increasing. The reason might be simple. The demand of coins have increased, and due to the fixed amount of Bitcoins in number the price have increased in order to fulfil the demands. This simply means there are more buy orders and sell orders at all the exchanges. Moreover who cares about the reason? Long term investors are happy to see this growth. Finally we can say that Bear market is ending. Let’s hope for the best.

The market price increase was so sudden and seeing it is already something to be happy for. Question is; how high would it be? The CPI really made an impact on the market price of Bitcoin as well as with the stock market (not still being felt I guess). Actually, I've anticipated such thing but for the last quarter of this year and I still think that the increase won't be consistent. It could be continuous if such report will be followed by another positive news about this industry which we should hope for. So that's indeed true. To those who are planning to ride with the wave, expect that profit won't be earned easily. If there will again be a sudden fall, be ready.

Of course, everything is based on supply and demand. But there are certain factors that will make investors buy and sell, so for me there is reason and according to @Edwardard,


So yes, this could be be the positive news that we are waiting for after all and the effect that it bring to the market is huge.

Maybe you are right, at the right time bitcoin will go up for no reason, we have been in a sideways and bearish situation for a long time, so bitcoin recovery should also be considered normal. Because no market goes up forever and no market goes down forever. The fact that bitcoin is still a market that is manipulated by sharks, they can pump bitcoin whenever they feel like it, so we shouldn't be too surprised. Bitcoin is on strong bullish momentum, breaking all predictions, and all previous technical analyses, bitcoin is really unpredictable.

Yes, it's not new but with all of the days and months when bitcoin was too slow moving and doesn't have that much movement at all, this is giving us the chills as why it's very exciting to see it go up. And you expect to see people have that predictions telling that "we're now in a bull run". That's a common thing but to see such is making me feel happy as well as they're sharing the good vibes that they're getting from the market. Well, those that are saying that it could be all about bitcoin's logo and Ms. El Salvador's outfit, well, let's just be happy about it although for me, there's really no significance at all.

Well, I'm done on this. I'm sure that they'll be back asking me again how to invest when bitcoin's bull run is validated.

I don't think anything specific or special happened to the price of bitcoin, it is a festive period and we can expect anything during this period so if the price of bitcoin begin to appreciate at this time, it may not be surprising. Maybe the investors confidence is growing now that the bear bars are no longer stronger.

Bitcoin and other crypto coin price can fluctuate abruptly immediately after CPI news, but their effect on bitcoin and other crypto price only do live short for a short time, the last CPI news do not favour bulls or bears and the market at the times was in both directions. Let me tell you something, do not believe that anything cause this present bull run other than it is just time for bull run to occur.

For now that is the only positive news that we have heard about what could have been the reason of the huge uptick on the price in the last 24 hours. Lol, others says it was due to Miss El Salvador wearing a costume with BTC logo on it, but I highly doubt that is the reason.

Perhaps investors are just tired of the market specially with the SBF drama, and now that we are over with it, time to pump the market again so what's next? what could be the resistance level? $21k have been broken so most like the next biggest wall which is $25k which we haven't seen for a while now.

I just saw people talking about CPI news but no one is sure, anyone has any other positive updates? I've also tried to search but can't seem to find any news greater than CPI.
I'm having mixed feelings because bitcoin price is rising so fast I won't be able to accumulate many cheap bitcoins anymore. On the other hand, bitcoin is up, I'm also glad my portfolio is recovering too.

Although it's not new for BTC to pump in a quick amount of time, still we can't help but be surprised to what it showed lately since January started poorly and then many are expecting for a slow recovery or none recovery at all but only just an added dump.

Those who link the recent increase to the move did by El Salvador in Miss U., might be right since I don't see any positive news other than this. Even in this forum, a lot of forum veterans here are also saying the same thing.

If you want Bitcoin to be more successful then you should encourage people to buy more and HODL, and not to give them a notice about securing their profits now. BTC isn't just a nobody but it is an extraordinary coin.

The Bitcoin market is just starting to normalize.  We already try to look at the market improvement of bitcoin but currently the price of bitcoin is 20,8k dollars.  But the market reached 21,2k dollars, the market has been a little lower but will rise again.  Investors still have time to load but those who are yet to invest should soon.  Currently this opportunity is not available anymore so all investors should take advantage of this market opportunity in Bitcoin.

I thought this very interesting:



Resistance level at 21,046$, followed by a small correction to 20,725$ after 50 minutes, and right after that, Bitcoin was pumping again to 21,000$! Although there was another small correction to 20,800$ next, Bitcoin is constantly attempting to hit 21,000$ once again, and that is the currently resistance level it has to break. Fluctuations are looking pretty strong and bullish!

I read all replies and agree with what you have written.

I simply believe that we are getting back to normal. Under normal conditions, without so much bullshit leverage cascading and cases like FTX affecting the ecosystem, we would not have gone below $20k at the bottom of the bear market. Now we are back to what would be normal, as sub $20k levels are priced in and in the next few cycles will be seen as a bargain. Take the opportunity to load up now while it is still cheap (this does not affect those of you who do DCA).

I'm shooked to see it hit $21,000 again this morning for a while and then back to $20,800. Within a week, coming from $16,900+ then now it's $20,800 and will likely to be staying there for a while. It's funny when I was browsing on the web and for some other groups, people which are likely new to the market saying that it's because of the outfit of Ms. El Salvador. Honestly, it made me laugh and thought that these people really are believing with such but it's fine because I've been there as well. I also start people telling that everyone should secure their profits, yeah, secure yours folks while me I'll just keep on chilling and continuing with my plan that I'll keep holding no matter what happens.

We're just a year and a few months away from the bitcoin halving. And I think that there's the essence of this recent pump and as well as other traders and investors in other markets do consider it when they've studied about what's the effect of it.

Most likely the reason for this rise, as mentioned by most of the members here, is due to “lower inflation in the US from 7.1% last November to 6.5% at present.”

But in my opinion, we have not entered the positive zone yet, in other words, the news of low inflation led to a strong rally in Bitcoin, but this rise may be temporary and not last for a long time, so I cannot confirm that we have entered the positive zone so far, and these goals are all temporary.

Most likely, Bitcoin may slightly exceed $21,000, and then it will rebound again.

The CPI might of been the spark that started the rally, sure, but it's MOFO that's really in control right now. it's hard to say how high it will go, but we wont know if 15.5K was bottom until we see how the market reacts to the up coming falling prices. something tells me that it would be so easy for btc in 2023.

I figured Bitcoin is basically going to be in a holding pattern in the bottom range until the Fed announces no more interest rate raises. I have been assuming the last rate raise will be March or May. But the inflation dropping down to 6.5% was great news and so investors are probably speculating that there will maybe only be a couple more 25 point raises and that's it. So yeah, the Bitcoin machine started building up after that and the people just started getting real hyped about the possibility of the bear market ending soon.

It'll be interesting to see if Bitcoin holds above $20k or so or if it falls back to $17k/$18k for a while before truly breaking out of the bottom of the market sometime in the next few months. The market may decide it was overly exuberant today and that the price shouldn't really break out until the Fed stops raising rates.

I expect whatever the rate ends up being, the Fed will probably keep it there until late in the year or early next year, but once the Fed does finally start actually reducing the rates again that's really gonna make investors dive into Bitcoin (even though it shouldn't because the rate doesn't actually affect Bitcoin at all lol, but investors are silly people and they just think Bitcoin is a tech stock haha). But that's not something to worry about now as there won't be any rate cutting for a good long while, right now it's all about when does rate raising end.

As soon as the Fed signals no more raising rates, Bitcoin will fly. What we saw today is probably just the earliest group of people getting in before the crowd does, front-running all the people who are actually waiting for the Fed to stop QT to start buying.

I didn't think we'd see $20k until March at the earliest. Not complaining haha. Hopefully today at least convinced plenty of the doom and gloom people that no Bitcoin of course is not going down to $10k or $6k or $3k or whatever silly number they are waiting for haha.

Alright, so both of you attribute the recent bitcoin's rally to the decreasement in US inflation from 7.1% on last November to 6.5% right now. So I guess by January 31 or February 1 we are going to have a clearer sign if the trend continues in crypto market, because it's going to happen the next FED's meeting, which could announce the reduction of interest rates in US. If that happens as awaited, it's possible Bitcoin enters an impressive rising mode, rewarding us with a pre-bullish season appetizer. That is a very significant hypothesis in my opinion. It really shouldn't be seen as nothing.

If that is the case then it took months for investor to buy, and now they are FOMOing again. So I believed that it could really be that the  (CPI) report has something to do not just for crypto but all across financial market as making a good gain. It's that the crypto is very volatile so obviously the increased is going to be higher as the risk is higher as well. Nevertheless, we might have seen the bottom already as technically 2023 should still be in the bearish zone. So we will have to stay awake and see if $20k-$21k will hold from this rally, otherwise this could be a fakeout just like when we reach $22k, (pre-FTX).

there's plenty of good news we can attribute this rise too, but the news didnt hit the buy button... I think there has been a build up of money on the sidelines waiting for "the bottom" and part of that money just got spooked and is mofoing in right now thinking 15.5K was bottom ( which is believable )

Yeah, it was due to the CPI announcement so we shouldn't be surprised as mostly investors are waiting for what could be the data look like. If the Fed sounds positive then it's going to be a bullish sentiments for us and that's what we are seeing right now.

Part of us could say 'meeh', this is nothing, but for me it's very optimistic sign that the market has settled down already regarding the FTX and we could be around $30k-$40 at the end of the year.

I've already posted here about the bullish div we got on btc on weekly timeframe. It just followed that exactly as predicted. And as you already know the CPI came in as neutral (6.5), which helped the bulls more to push the price. Im fully celebrating this rally. It didnt come out of nowhere, this was totally anticipated in the TA.

Bitcoin is unstoppable, advancing fastly forward with non-stops! Without any dramas or delays it has just hit the 20,000$ mark for the first time since November, 2022.

Right now we are already at 20,200$ price range, and heading to 21,000$. It seems nothing special has happened to justify such fluctuations in price, besides we being in a new fresh year. What do you think has motivated Bitcoin to suddenly revert the bearish tendency?