Bitcoin’s price surpassed the $70,000 level on Saturday, signaling a strong recovery after a sharp decline earlier this month. The rise in market risk appetite followed a lower-than-expected increase in U.S. inflation rates, benefiting cryptocurrencies. This rebound pushed Bitcoin’s global market capitalization back above $1.4 trillion. Currently trading around $70,215, Bitcoin gained nearly 2% in the past 24 hours, with daily trading volume close to $43 billion. The inflation rate for U.S. consumers was recorded at 2.4% year-on-year, slightly below expert forecasts, increasing hopes for a potential Federal Reserve interest rate cut, which generally favors higher-risk assets like cryptocurrencies.
Stocks of crypto-related companies also improved, with Coinbase shares rising 18% and Strategy Incorporated shares up 10%, despite Coinbase recently reporting losses due to weak trading revenue. Strategy Incorporated has recently purchased over 1,100 Bitcoins but has also faced financial losses amid market volatility. This price increase follows several months of decline after Bitcoin reached a peak above $120,000 in October. In early February, the price fell below the psychological $70,000 threshold, marking a significant milestone for the market. Research firm K33 described this drop as a “local bottom,” though investor fear and uncertainty remain evident, as reflected in the Crypto Fear and Greed Index.
Fluctuations in Bitcoin and other cryptocurrencies continue to be closely linked to global financial and economic conditions. The market is expected to remain volatile, especially as economic policies and interest rates evolve.
Source: bitcoinmagazine
