Touted as one of the biggest cryptocurrencies, Bitcoin price traded more than $41,000 for the past three months!
It is an indication that the crypto is renewing its risk appetite. However, the Bitcoin price is scaling new heights and has recorded a new high of $41,983. This occurrence gives a 27% increase than $32,950.72 last January 24.
Hitting this two-week rally is quite a big blow to the “Bitcoin bear” who sees this crypto as just another bubble.
But what makes Bitcoin prices surge even in the first phase of the year? What should you do? Read on and learn the possible reasons for this spike:
3 Reasons Why Bitcoin Price Increased
1. Record Job Growth in the US
More than half a million jobs are now available in the US despite the onset of the Omicron variant. However, as per the US Labor Department’s Bureau of Labor Statistics report, the unemployment figures rise slightly to 4%.
What is more surprising is that it exceeded the 150,000 new job predictions. Dow Jones’ survey added that the unemployment timeline would see an upward movement. What does it mean for Bitcoin?
Experts and analysts said it is good news for Bitcoin price rise. It has become an assurance that people’s belief in the currency is still strong. Rising employment figures are also a hint of improved consumer confidence as they perceive it as a wake-up call to spend money.
2. Financial Reports Are Done
If you are not aware, traditional stock markets and Bitcoin operate in the same vein. The financial reports of Wall Street and other countries have often irked investors as they could easily shift their money from stocks to Bitcoin.
When the result is positive, it is time to invest, as traders are optimistic that more money will be rolling in. But when the figures are negative, investors may just withdraw their money and divert them to Bitcoin, which has been running on a bullish run for months.
Most Fortune 500 companies and big names in the business sector had their financial reports done at the end of 2021. This is a crucial trigger to bring in more money to Bitcoin.
Take, for example, a week ago, Meta (also known as Facebook) filed their Q4 financial report, announcing that they are losing daily active users. As a result, Facebook’s shares fell by more than 26% the next day, causing a big hole in the stock market.
Since these reports are done already, analysts are expecting that the market will become less volatile.
3. Corrections
In cryptocurrency, correction is one of the terms often used in all circles. It is a natural move for prices to go down as it allows market players to reduce positions, cash out, or whatever strategies they have.
Bitcoin has been declining lately. Moreover, there are no positive corrections in place. But with the sudden surge, yesterday it reached the biggest green candle event that has happened ever since November 10, last year’s all-time high price of Bitcoin.
Such an event is pretty exciting for traders! It shows that the bulls are not leaving the game yet.
What To Expect?
As of today, the Bitcoin price is still in a bullish rally and is aiming to break its all-time high. If you are in for it, what steps should you take?
One, if your Bitcoin is stored in an exchange such as Coinbase or Binance, simply wait for their service to resume. Due to unprecedented load and traffic, the crypto trading platforms are working on their system.
Two, if you have them in a wallet such as Ledger Nano or Bitcoin Core, take time to review your holdings and check out the price movement.
Three, if you have them in paper or private keys, transfer them to reputable exchanges and sell them. However, caution is advised to all crypto traders – sell only if the price is above your entry point. Otherwise, wait for the correction to happen.
Lastly, if you don’t have Bitcoin, take this as a golden opportunity to buy it. Don’t know how to buy Bitcoin? Read this blog to help you out!
But in the meantime, let us cheer for the soaring price of Bitcoin! Then, take a rest from the noise and enjoy this one-of-a-kind rally!
Your Key Takeaway
The Crypto world is not for the faint-hearted. However, such a situation is not as unpredictable as you perceive it. There are important reasons for the Bitcoin price pump and the recent surge in the past three months.
By knowing these reasons, you can strategize and make a lot of money from it, especially when you are associated with the crypto market and focused on the price movement. So, be informed to avoid the risks and make money from your cryptocurrency.
