🧧🧧$BTC
Bitcoin (BTC) rose 12 percent after Monday's market crash to $60,720. This rise marks the biggest gain recorded since November 2022. The total value of the cryptocurrency market also increased by 12 percent to $2.12 trillion.
Indicators such as the strong U.S. job market, declining bankruptcies and increasing rail traffic show that the economy is more robust than expected. This could help the cryptocurrency markets maintain their stability.
In addition, the interest rate cuts expected from major central banks are seen as a positive signal. Speculation is growing that interest rates could be reduced in September in the USA. Such discounts can increase liquidity in the markets and provide a favorable environment for cryptocurrencies. The Bank of Japan's decision not to increase interest rates also contributes to global financial stability.
The decrease in geopolitical risks in the Middle East also continues its positive effect on the market. The stability experienced in this region prevents major disruptions in global oil supply and inflation. Additionally, the growth of spot Bitcoin ETFs and the fact that daily purchases surpass new BTC production show that demand for Bitcoin is continuing.
Other Reasons
FTX's plan to return $12.7 million in cryptocurrency to post-bankruptcy users also stands out as a positive development for the market. This return can add liquidity to the market and increase sensitivity. The Pi Cycle indicator, on the other hand, predicts that the market has not yet reached its peak and that there may be more rises.
Important Inferences
Market liquidity may increase with the interest rate cuts of the US Federal Reserve.
Strong economic indicators can help stabilize the cryptocurrency market.
Cryptocurrency refunds to users of FTX can increase market liquidity.
The reduction in geopolitical risks could reduce disruptions in global oil supply and inflation.
The growth of spot Bitcoin ETFs shows continued demand for Bitcoin.
Finally, central bank actions and increased money supply support the rally seen in cryptocurrencies. The continued rise of global liquidity means greater bullish potential for Bitcoin and altcoins. The upcoming U.S. election could also lead to pro-crypto policies, providing an additional layer of optimism for investors.