Is the bull run finally back now that Bitcoin has passed $30,000?

This is the news of the night, the one you will find in all the crypto media this morning: Bitcoin broke the symbolic bar of $30,000. Breaking through the key psychological level of $30,000 last night around 10 p.m., as investors await key inflation data, this news might see cryptos do well during the week.

Above $30,000 for the first time since June

The largest cryptocurrency by capitalization (now over $581 billion) rose 7% to around $30,400 for the first time since June 2022, according to data from CoinMarketCap.

It’s still not the $10,000,000 predicted by Jesse Myers, but it’s good news!

Ethereum in profit

Ethereum on the other hand rose more than 3.5% to $1,925.11 for the first time since August as investors expect profit taking with the network’s upcoming technical upgrade. Ethereum, scheduled for Wednesday.

The way is clear until $35,000?

Now that Bitcoin has touched $30,000, it has the potential to approach $35,000 which will be the next significant psychological resistance as it “forces short-term speculators to hedge and buy,” Managing Partner Ravish said. of Bitcoin Opportunity Fund.

And all this despite the decision of the American justice to sell a large quantity of Bitcoins!

Inflation: next important data

Traders will likely be speculating ahead of Wednesday’s CPI announcement. This might benefit Bitcoin which “might reach levels that would give the Fed reason to consider a pause in rate hikes at its next meeting, which would boost assets like Bitcoin,” Lavish added.

What are the market expectations?

“It is clear that the market is pricing in slower growth, and in turn an easing of monetary policy from the Federal Reserve over the course of 2023,” said Richard Mico, US CEO and chief legal officer of Banxa, a tech company. payment and -compliance infrastructure provider for crypto. “For proof of this, just look at the bond market.”

Bitcoin in steamroller mode in 2023

In 2023, Bitcoin resumed its forward march, in steamroller mode. Monday night’s rise sent the price of bitcoin up more than 80% year-to-date, while ether is up 60% year-to-date.

A first since June 10, 2022

Bitcoin last exceeded $30,000 on June 10, 2022, when it was below $20,000, where it spent much of the end of this year and the first few weeks of 2023.

Economic conditions that benefit him

For the past few weeks, it has been hovering around $28,000. But as investors measured the impact of a near-collapse in the banking sector, lingering inflationary pressures and other macroeconomic uncertainties, the game has changed.

Evolution of the price of BTC since January 1, 2023

Bitcoin is up around 80% since the start of 2023 following bottoming out at $16,600.

ETH and BTC now less correlated

The price action of the two crypto-assets has historically followed a relatively consistent percentage trend, but the two top crypto-assets “uncorrelated” in March as Bitcoin “turned to safe-haven qualification” following the market closes. banks.

Nonetheless, the two cryptocurrencies are still following the same moves at the moment, with macro factors continuing to influence both assets. Incoming inflation data will be crucial in determining if or when the Fed pauses or ends its rate hikes.

Meanwhile, Ether rose ahead of its scheduled “Shanghai” technical upgrade, which is expected to put negative selling pressure on the market as funds previously locked in Ether are released in the coming weeks.