The end of a bear run? Why is Bitcoin suddenly surging?

Over the past 24 hours, Bitcoin has seen a massive 10.7% pump. This bullish move comes just after the announcement of a 75 basis point interest rate increase in the United States. At the time of writing, Bitcoin is looking at a $23,821.67 USD price, after sitting just above $20,900 USD in the past few days of trading.

Bitcoin is not the only cryptocurrency in the market to enjoy a bullish rally. After the news of another interest rate increase, other leading altcoins saw a surge too. In the past 24 hours, Ethereum gained 13.4%, Binance Coin saw a gain of 7.1%, Polygon has increased by 14.% and Ethereum Classic has seen a whopping 71.7% increase.

Mati Greenspan, CEO of Quantum Economics and expert trading analyst in the industry, took to Twitter to suggest (in jest perhaps but not necessarily far off) that the interest rate might be bullish for the industry:

Interest rates in the market and the impact on investors

Part of the Federal Reserve’s plans to reduce the rise of inflation is in the increase of interest rates. This commonly reduces the investor interest in general, especially with risk-on assets like cryptocurrencies.

However, this bullish movement after the news indicates otherwise and there are both critics and bulls that are wondering whether this pump will be enough to change the trajectory of the trading market, or whether a strong bearish correction is in place. Crypto analyst CryptoCap weighed in, saying that the market taking new lows as a result of a dump is likely:

In response, however, the trading analyst was met with positive sentiment surrounding Bitcoin’s movement, with traders calling him out on the possible loss made from ignoring market movements.
“You only advise on the top and bottom. In between so much money to be made. You told people not to buy the ‘fake pump’, so if they listened they now missed this 7% $BTC pump. You did this before. People can earn a lot more money than wait until “your” 16K bottom. Makes no sense..”

Related Articles

The top three privacy-focused cryptocurrencies

Privacy cryptocurrencies are designed to offer the greatest anonymity and security possible with untraceable transactions.

Anchorage announces layoffs amidst regulatory uncertainty

Another cryptocurrency firm has announced that it will be reducing its workforce to better focus resources.

What are crypto firms going to do with banking options?

With leading banks that service crypto closing down, what other options do crypto firms have for finances? In this, we explore.

The crypto-friendly Signature Bank slapped by lawsuit

The cryptocurrency-friendly Signature Bank and its former executives are being sued by shareholders for alleged fraud and misleading claims.

See All