The cryptocurrency market for the first time since September of 2021 seems jubilant as bitcoin positively made it past the $43,000 mark. It has been up by 2.35% in the last 24-hours thanks to the Fed’s reassurance yesterday. Experts believe the price of BTC may have been driven by the Consumer Price Index that rose to an annual clip of 7% in December – the highest since the early-1980s.
There are fears that BTC’s further price rise will prompt the Federal Reserve to tighten monetary conditions. The popular cryptocurrency’s price has accelerated since the Fed started printing money. So far, there is more than $4 trillion. And since the advent of the COVID-19 pandemic in 2020, the Fed has been pursuing ultra-loose monetary policies. It has been trying its best to keep the market rolling.
Mati Greenspan, the founder of Quantum Economics, believes the market’s reaction might be confusing as crypto markets are gaining. The analysts observed that investors seem to be more relaxed.
Other cryptocurrencies are also headed upward. Ethereum, the world’s second most popular digital asset is up by 3.51% in the last 24-hours but still not at its 4K mark. Its price stands at $3,348. NEAR token is at an all-time high as its blockchain continues to attract more activities, despite it being undervalued.
Back to BTC again, analysts say that if it trades below $42,000 by January 14, investors will have a $75 million net profit on their bitcoin options. There is hope that the 14% price drop, over the last three weeks, will wipe out the bullish bets. And if BTC price remains below $44K on January 14, only $44 million worth of the buy options will be available. If bitcoin trades below that price, there is no value in the right to buy the crypto asset.