Bitcoin climbs above $111,000
Bitcoin is officially in bull mode. In the last 24 hours, Bitcoin's price has risen four percent and peaked at $111,500.
Bitcoin is officially in bull mode. In the last 24 hours, Bitcoin's price has risen four percent and peaked at $111,500. This has pushed Bitcoin to a new all-time high and into uncharted territory.
Altcoins are riding the rally too. Ethereum (ETH), the second-largest by market cap, is currently around $2,628, still about 46% below the November 2021 high of $4,878.
The rise in the crypto market results from a mix of technical and macroeconomic factors. Tensions in the bond market are playing a key role here: investors are shifting capital into scarce assets like gold and Bitcoin. The credit rating agency Moody's cut the rating of U.S. Treasuries this week, which could lead to higher financing costs for the US and, over time, more inflation. More inflation often means more money in circulation, which is generally positive for crypto assets.
According to market analysts like Andreas Steno, a new round of global “Quantitative Easing” isn't off the table, a scenario where central banks massively buy government bonds and pump huge amounts of liquidity back into the market.
Meanwhile rises also the demand for Bitcoin-ETFs is surging. Just on Wednesday, May 21, $607 million flowed into these funds. Total inflows this week thus come to $1.6 billion.
Institutional investors aren't lagging behind either. For example, Michael Saylor bought another 7,390 BTC this week, worth $765 million. He stays true to his strategy: buy, hold, and keep buying.
What's the next step? The signals remain bullish for now, but with such rapid gains, pullbacks are always a risk. Still, analyst Plan C calls this bull run “healthy.”
Some indicators, such as the NVT Golden Cross, suggest the overheated level of 2.2 is dangerously close. A pullback seems more a matter of when than if.
