Bitcoin Spikes to $27.5k as US Dollar Weakens
Demand for digital assets has resulted in a sustained rally on major cryptocurrencies assets as the United States (US) dollar weakens.
Bitcoin surged to $27,475 adding $2,315 to its previous close. The market price of the most popular digital asset is currently moving in favour of retail investors seeking profit.
However, market analysts remain positive that the crypto asset could break the next resistance and cross above $30,000 as expectations of reduced interest rate hikes drive the latest momentum.
Trading data from crypto market indicates that Bitcoin, the world’s biggest cryptocurrency, is up by about 67% from the year’s low of $16,496 on Jan. 1. At the same time, Ether the coin linked to the Ethereum blockchain network, rose 5.5% to $1,768.5 on Friday, adding $91.6 to its previous close.
The Dollar Index falls 0.5% today and will end the week down 0.8% at current levels–its worst week since Jan. 13, according to Dow Jones Market Data.
The foreign exchange market has been a haven of calm amid bank failures, financial-crisis fears and volatility in government bond markets, Jonas Goltermann at Capital Economics says in a note.
The deputy chief markets economist says the dollar’s on the back foot despite worsening risk appetite because “expected interest rates, and therefore bond yields, have dropped much further in the US than in most other economies.
At the range, Bitcoin is trading at a nine-month high of over $27,000 and has liquidated more than $200 million from short sellers, according to available data.
After mainly trading around the $20,000 to $24,000 range in February, BTC dropped below $20,000 in early March after USD Coin (USDC) de-peg. There have been pressures in the market amidst continual demand for regulations by countries.
As an alternative investment option, market data shows that BTCUSD has outperformed traditional assets like Gold, NASDAQ, and S&P 500 in the current year. #Bitcoin Spikes to $27.5k as US Dollar Weakens