Top Reasons The Crypto Market Is Rising Today

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The crypto market saw significant bullish momentum on Monday, starting the week on a positive note. The global crypto market capitalization increased by more than 3%, supported by a 100% increase in trading volume. Traders were anticipating a rebound in the coming weeks, but Bitcoin and Ethereum eventually surged over $17,000 and $1,300. Here are the top reasons supporting the crypto market rebound.

Has the crypto market really gone bullish?

The main reason for the rally in the crypto market is a slowdown in wage growth and a contraction in service sector activity in the United States, indicating less aggressive rate hikes from the Federal Reserve.

Additionally, Bitcoin and Ethereum prices have held strong above key support levels despite a crucial last week. Additionally, crypto prices saw bullish momentum following the release of the FOMC minutes.

Several macroeconomic factors point to a slowdown in inflation and a recovery in the global economy. China’s reopening of international borders and efforts by other central banks to dampen inflation boosted investor confidence. As a result, stock markets in Asia and Europe are opening in the green today.

Additionally, the US Dollar Index (DXY) fell to 103.43 in the past 24 hours, leading Bitcoin price to rally above $17,000. However, volatility can be expected this week due to a number of reversal events.

Financial services giants BlackRock and Morgan Stanley are indirectly boosting Bitcoin prices by increasing holdings of GBTC and crypto company stocks in their funds.

Crypto Analyst Prediction of Bitcoin and Ethereum Price

Bitcoin price is trading at $17,210, up almost 2% in the past 24 hours. Meanwhile, Ethereum price has climbed nearly 4% in the past 24 hours, with the current price trading at $1,308.

Crypto analysts such as Michael van de Poppe have previously pointed out that Bitcoin and Ethereum prices could rally until the next FOMC rate hike decision on February 1. Altcoins will likely follow the rebound of mainstream cryptocurrencies. However, a slide could be seen next month.

According to crypto analyst CredibleCrypto, the price of ETH will fall below $1,080. While $1170 is the best level to buy Ethereum for the long term, whales expect Ethereum to build below $1100. However, he also said that ETH price could not go below $1,170 and will rebound soon.

Also Read: Cardano (ADA) and Solana (SOL) Lead the Altcoin Rally

Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he shared his knowledge on blockchain, crypto-currencies, artificial intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period of time and currently covers all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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