{"id":35536,"date":"2024-01-27T23:53:46","date_gmt":"2024-01-28T03:53:46","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=35536"},"modified":"2024-01-27T23:53:46","modified_gmt":"2024-01-28T03:53:46","slug":"here-are-the-major-drivers-behind-the-bitcoin-price-recovery-above-42000","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/01\/27\/here-are-the-major-drivers-behind-the-bitcoin-price-recovery-above-42000\/","title":{"rendered":"Here Are The Major Drivers Behind The Bitcoin Price Recovery Above $42,000"},"content":{"rendered":"

Bitcoin recently surged above $42,000, having traded below $40,000<\/a> for several days. This market recovery is believed to be a result of different factors, including recent revelations about the US economy<\/a>.\u00a0<\/p>\n

Macroeconomic Factors That Contributed To The Recent Bitcoin Surge<\/h2>\n

The personal income expenditures (PCE) price index, a leading inflation indicator<\/a>, was released on January 26 and reported<\/a> to have been lower than expectations. This suggests that inflation in the United States is cooling off, and experts predict that the Federal Reserve will likely reduce their aggressive monetary policies.\u00a0<\/p>\n

The Fed\u2019s hawkish stance is known to have a negative effect on Bitcoin\u2019s price<\/a> and the broader crypto market. As such, this recent development is a positive one and is something that could have influenced investors to double down on their investments in the flagship cryptocurrency, thereby sparking a price surge.\u00a0<\/p>\n

Meanwhile, data<\/a> from the US Treasury recently showed that the country has hit an all-time debt<\/a> of $34,1 trillion. While this has raised concerns about the looming crash of the US dollar, it has also presented Bitcoin and other cryptocurrencies as a haven<\/a> to hedge against the potential devaluation of the nation\u2019s currency.\u00a0<\/p>\n

Interestingly, different financial analysts, including renowned economist Peter Schiff<\/a>, have continued to predict the imminent crash of the US dollar. In light of this, finance author Robert Kiyosaki <\/a>has urged everyone to invest in Bitcoin to avoid becoming poorer due to the government\u2019s actions.\u00a0<\/p>\n

Another factor believed to have contributed to Bitcoin\u2019s recent surge is the expiration of monthly BTC options contracts on Deribit. The expiry outcome more than likely played a crucial role in Bitcoin\u2019s rally, considering that CryptoQuant CEO Ki Young Ju had pinpointed<\/a> the derivatives market as responsible for Bitcoin\u2019s recent decline.\u00a0\u00a0<\/p>\n\n

GBTC\u2019s Outflow Slows For The Fourth Consecutive Day<\/h2>\n

Grayscale\u2019s GBTC<\/a> saw<\/a> an outflow of just $255.1 million on January 26, continuing a recent trend of reduced outflows from the fund. NewsBTC reported<\/a> how the Bitcoin ETF had seen outflows of $515 million, $429 million, and $394 million on January 23, 24, and 25, respectively.<\/p>\n

As noted<\/a> by Bloomberg analyst James Seyffart<\/a>, January 26 also happened to be the lowest outflow day for GBTC since converting to a Spot Bitcoin ETF<\/a>. This development suggests that the fund\u2019s investors may be cooling off on taking profits. It is also significant because Grayscale <\/a>has contributed to the selling pressure that has plagued Bitcoin of late.\u00a0<\/p>\n

At the time of writing, Bitcoin is trading at around $41,700, up over 4% in the last 24 hours according to data from CoinMarketCap.<\/p>\n

\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Bitcoin recently surged above $42,000, having traded below $40,000<\/a> for several days. This market recovery is believed to be a result of different factors, including recent revelations about the US economy<\/a>.\u00a0<\/p>\n

Macroeconomic Factors That Contributed To The Recent Bitcoin Surge<\/h2>\n

The personal income expenditures (PCE) price index, a leading inflation indicator<\/a>, was released on January 26 and reported<\/a> to have been lower than expectations. This suggests that inflation in the United States is cooling off, and experts predict that the Federal Reserve will likely reduce their aggressive monetary policies.\u00a0<\/p>\n

The Fed\u2019s hawkish stance is known to have a negative effect on Bitcoin\u2019s price<\/a> and the broader crypto market. As such, this recent development is a positive one and is something that could have influenced investors to double down on their investments in the flagship cryptocurrency, thereby sparking a price surge.\u00a0<\/p>\n

Meanwhile, data<\/a> from the US Treasury recently showed that the country has hit an all-time debt<\/a> of $34,1 trillion. While this has raised concerns about the looming crash of the US dollar, it has also presented Bitcoin and other cryptocurrencies as a haven<\/a> to hedge against the potential devaluation of the nation\u2019s currency.\u00a0<\/p>\n

Interestingly, different financial analysts, including renowned economist Peter Schiff<\/a>, have continued to predict the imminent crash of the US dollar. In light of this, finance author Robert Kiyosaki <\/a>has urged everyone to invest in Bitcoin to avoid becoming poorer due to the government\u2019s actions.\u00a0<\/p>\n

Another factor believed to have contributed to Bitcoin\u2019s recent surge is the expiration of monthly BTC options contracts on Deribit. The expiry outcome more than likely played a crucial role in Bitcoin\u2019s rally, considering that CryptoQuant CEO Ki Young Ju had pinpointed<\/a> the derivatives market as responsible for Bitcoin\u2019s recent decline.\u00a0\u00a0<\/p>\n

GBTC\u2019s Outflow Slows For The Fourth Consecutive Day<\/h2>\n

Grayscale\u2019s GBTC<\/a> saw<\/a> an outflow of just $255.1 million on January 26, continuing a recent trend of reduced outflows from the fund. NewsBTC reported<\/a> how the Bitcoin ETF had seen outflows of $515 million, $429 million, and $394 million on January 23, 24, and 25, respectively.<\/p>\n

As noted<\/a> by Bloomberg analyst James Seyffart<\/a>, January 26 also happened to be the lowest outflow day for GBTC since converting to a Spot Bitcoin ETF<\/a>. This development suggests that the fund\u2019s investors may be cooling off on taking profits. It is also significant because Grayscale <\/a>has contributed to the selling pressure that has plagued Bitcoin of late.\u00a0<\/p>\n

At the time of writing, Bitcoin is trading at around $41,700, up over 4% in the last 24 hours according to data from CoinMarketCap.<\/p>\n

\u00a0<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-35536","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=35536"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35536\/revisions"}],"predecessor-version":[{"id":35539,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35536\/revisions\/35539"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=35536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=35536"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=35536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}