The world's largest cryptocurrency Bitcoin has seen tremendous growth. Its price has reached the level of around 80 thousand dollars and it is moving towards the biggest weekly increase in the last three years.
Bitcoin Hike: The price of Bitcoin, the world's largest cryptocurrency, has seen a strong rise this week. Bitcoin rose by about 9.4 percent in a day to around $77,500. Its price has increased by about 23 percent so far this week. If this bullish trend continues, this could be Bitcoin's strongest weekly gain since March 2023.
This rise of Bitcoin has once again increased the interest of investors in the crypto market. The world's most popular digital currency is now trading near the psychological level of $80,000. Due to this, investors are keeping an eye on whether Bitcoin will be able to cross this important level and create the basis for a new rise in future.
Bitcoin headed for biggest weekly rally in three years
The speed with which Bitcoin has gained this week has increased the stir in the crypto market. After a rise of about 9.4 percent in a single day, its price reached around $77,500. Talking about the entire week, digital assets have strengthened by about 23 percent. If this gain continues through the end of the week, it could become Bitcoin's biggest weekly rally since March 2023. Earlier in May, Bitcoin had reached the level of $ 80,000.
News related to America boosted investor confidence
Developments related to the US financial market are being considered an important reason behind the recent rise of Bitcoin. There was a change in market sentiment after US Treasury Secretary Scott Besant announced at least doubling the buyback plan of long-term US government bonds. After this announcement, bond yields softened and interest in risk assets increased among investors. The cryptocurrency market including Bitcoin benefited from this.
Many traders who had short positions in the market also had to close their positions, which gave additional impetus to Bitcoin's rise. In the crypto market, this was seen as short covering, in which investors expecting a fall start cutting their positions when the price rises.
Trump's meeting with crypto industry also became a topic of discussion
Meanwhile, US President Donald Trump's meeting with people associated with the crypto industry also attracted the attention of the market. This strengthened positive expectations among investors regarding America's crypto policy. However, some investors also expressed concern about the possible impact on the dollar of US government intervention in the bond market. During the same period, gold prices also witnessed a strong rise, which is considered a sign of demand for safe investment in the market.
What did experts say about Bitcoin?
Ray Dalio, founder of Bridgewater Associates, advises investors to spread investments across countries and different asset classes with strong financial conditions. He believes that keeping a limited amount of Bitcoin along with gold in the portfolio can help balance the risk. On the other hand, according to BTC Markets analyst Rachel Lucas, the main reason for Bitcoin's recent rise was the developments related to long-term bond buybacks of the US Treasury. According to him, the fall in long-term bond yields increased risk appetite in the market and Bitcoin benefited from this.
However, experts also believe that there is no major change in the long-term investment story of Bitcoin at the moment. Also, sharp fluctuations in its price i.e. volatility still remains a major risk.