As of October 26th, most major cryptocurrencies are making single-digit profits. Bitcoin recorded a 5.15% price increase in the last 24 hours and a 5.48% increase in the last 7 days.While the current price fluctuates, BTC $20,000 level psychologically importantThe following chart shows the rise of BTC since October 24th.
Stocks are starting to fall as Bitcoin continues to rise above $20,000. Bitcoin’s momentum has now lasted three days, and we see a green candle on October 26th. The recent price surge has pushed the cryptocurrency market capitalization above $1 trillion, after months of Bitcoin trading in a tight sideways range between $18,000 and $20,000.
Hand in hand with the growth of Bitcoin, most major cryptocurrencies, including Ether (ethereum), Solana’s SOL(Sol), Cardano’s ADA (ADA), MATIC for polygons (matic), XRP (XRP) and Tron’s TRX (TRX) — recorded a price increase of 10% or more in the last 48 hours. There are several reasons for the rise of cryptocurrencies.
The current rally in BTC and other major cryptocurrencies may indicate growing confidence in the market following some important developments. Key drivers of growth include:
$1 billion short position liquidated
Open interest in BTC futures contracts has skyrocketed since the price of Bitcoin plummeted to $17,600 on June 18. The current price action has triggered a wave of liquidations. One data point to look out for is whether we see a sharp drop in total open interest.
The data shows that bitcoin short liquidation $550 million Within the last 24 hours. A $704 million Croscript short liquidated on Oct. 25, with a tally of $275 million so far on Oct. 26.
A short-term liquidation directly helps push Bitcoin’s price higher by forcing automated buying pressure. The current rally sees open interest gaining momentum after being consistent since October.
Macro moves are starting to favor Bitcoin
Investor confidence in the crypto market may also have increased due to their belief that the US Federal Reserve could roll out a small rate hike in the next two months.According to MacroMicro, a company that publishes investor consensus estimates of expected interest rate changes, interest rates are low More than previously expected in the near future.
The chart shows a possible slowdown in rate hikes. Public opinion has indicated that interest rates may fall in the future, and investors believe this has created the potential for a broader cryptocurrency market recovery.
The S&P 500 provides a general economic overview. Bitcoin and the S&P 500 currently share a high correlation coefficient.
So, if interest rates ease and the economy grows, Bitcoin could continue to rise if we see a similar upturn in the stock market. The better the macro environment, the better the Bitcoin price.
Stocks rally for days, UK gains crypto-friendly leader
The election of Rishi Sunak as the new prime minister of the UK seems to have boosted sentiment among cryptocurrency investors. Snak is a crypto advocate It has also commissioned royal non-fungible tokens (NFTs).As a result, many expect him to make Key Reforms in the Crypto Sector.
During his tenure as Finance Minister under the leadership of Boris Johnson, Snak demonstrated its desire to make the UK a cryptocurrency hub.
In April 2022, Sunak said:
“It is my ambition to make the UK a global hub for cryptocurrency technology and the measures outlined today will help businesses to invest, innovate and scale in the country. “
It’s still too early to tell if the Oct. 26 rise is a sign of a change in trend, but one thing is clear.Macromarket dynamics and investor expectations of central bank policies and investments Crypto Regulatory Framework improve.
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