The price of the best-known cryptocurrency bitcoin has risen by more than ten percent since Tuesday morning to $71,000, approximately 1.47 million crowns. This is the highest value since early June, although still one-fifth lower than the bitcoin price at the beginning of this year. This emerges from data from the Kurzy.cz server.
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What triggered bitcoin’s growth?
According to Purple Trading analyst Petr Lajsek, one of the main triggers for significant growth was news from the U.S. Treasury Department, which announced a substantial increase in the volume of buybacks of long-term U.S. bonds. “This move can help stabilize the bond market and reduce pressure on long-term yields.
For bitcoin and other risky assets, what’s particularly important is that it improves the liquidity environment. When money starts moving back into riskier assets, bitcoin has historically been able to benefit from this very significantly. The second factor is a more favorable regulatory environment in the United States,” Lajsek stated.
According to Martin Stránský, director of the Bit.plus exchange, bitcoin’s growth shows how sensitive the cryptocurrency market is to a combination of new capital inflows and expectations of more favorable regulation. “Institutional investors and spot bitcoin ETFs play a particularly important role, having attracted significant volumes of money again in recent weeks. The sharp upward movement may also have been amplified by the closing of short positions, known as a short squeeze,” he added.
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Short squeeze drives bitcoin upward: Analysts expect $90,000 in second half of year
According to Rostislav Plachý from Golden Gate, traders who were betting on a decline were forced to close their positions by buying bitcoin as the price rose, which further accelerated the growth. “So it’s a combination of real demand from institutional investors and a technical market movement that amplified the current growth,” he stated.
Bitcoin reached its highest value so far in early October last year, when it briefly exceeded the $126,000 threshold. According to experts, it could reach levels around $90,000 in the second half of this year.
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Source: ČTK
