A big change has been seen in the investment market for some time. The stock market is under constant pressure and has declined for the seventh consecutive week. This is said to be the longest weekly decline in the stock market after the year 2020.
Bitcoin Crypto Return: At this time in the global financial market, the attention of investors is once again turning towards Bitcoin and other cryptocurrencies. On one hand, there is continuous weakness in the stock markets, while Bitcoin seems to be recovering to some extent from the recent fall. Amidst this change, the question is arising whether some investors worried about the risks in the stock market may turn to crypto assets again.
Bitcoin has crossed the $87,000 level in recent days. However, after this some profit booking was seen in the price. At around 11 am on Saturday, Bitcoin was trading around $83,900. In the last one week, its price has increased by more than 3.50 percent, while in the last one month it has increased by more than 6 percent.
Why did Bitcoin weaken after 87 thousand dollars?
Despite the recent rise in Bitcoin, its price remains influenced by global economic conditions. Strong economic data from America has influenced investors' expectations regarding interest rates. The US composite PMI for September reached 58.4, which was reported to be the strongest level since July 2021. Along with strong business activities, companies also saw an increase in input and transportation costs. This increased concerns about inflation.
After this the US 10-year treasury yield also increased. Generally, when market pressure increases regarding bond yields and interest rates, risk assets without regular income may be affected. Similar pressure was seen on Bitcoin also. Additionally, large-scale liquidation of positions in the futures market led to sudden price fluctuations.
What was the reason for the first rise in Bitcoin?
Several factors are said to have contributed to the recent recovery. Bitcoin recorded a weekly closing above its 50-week moving average after a long gap. Additionally, the fall in crude oil prices raised hopes of a reduction in global inflationary pressures. Investment flows into US spot Bitcoin ETFs have also been a key factor for the crypto market. Increased participation from institutional investors may support demand for Bitcoin.
Meanwhile, liquidation of big deals by traders who had taken short positions also created forced buying pressure in the market, which accelerated the rise in the price of Bitcoin.
Could Bitcoin see a big rally again?
There are differing opinions in the market regarding the future performance of Bitcoin. Experts associated with the crypto industry, citing the historical price cycles of Bitcoin, draw attention to the big increases in its price from time to time. According to Nischal Shetty, founder of WazirX, Bitcoin's previous market cycles have seen significant bullish movements at intervals of about four years. However, historical patterns do not guarantee future price.
In 2021, Bitcoin made a record high at that time. After this, in 2025 also the cryptocurrency made a new record and the price reached above 1.20 lakh dollars. Based on this cycle, some market participants are discussing the possibility of another big bullish phase around 2028-29. However, this is merely an estimate based on historical patterns.
Where the price of Bitcoin will go in the future will depend on many factors such as global interest rates, investments in ETFs, institutional demand, regulatory changes and the risk appetite of investors.