Three reasons why Bitcoin rose 16% in five days


Last Wednesday, we talked about the reasons for the concern and refusal of investors from risky assets. Forecasts for the collapse of cryptocurrencies and the stock market have reappeared. For example, Robert Kiyosaki (author of the bestselling Rich Dad Poor Dad) predicts a full-blown financial crisis this month. As the emotions escalated in late September, the fear and greed indicator nearly dipped to 2021 lows, when it traded in the $ 30,000 region.

Image source: alternative.me

However, over the past five days, fears have receded, and Bitcoin is up 16%.

Image Source: StormGain Cryptocurrency Exchange

Image Source: StormGain Cryptocurrency Exchange

First, President Biden did not aggravate the situation and signed a decree allowing parliamentarians to settle the budget until December 3. The shutdown was delayed and the government received the necessary funding.

Secondly, Fed Chairman Jerome Powell said that the regulator does not intend to ban cryptocurrencies. Another thing is the regulation of stablecoins, the issue and provision of which should be supervised. The same is true for the DeFi market. But Bitcoin, being a decentralized and non-affiliated asset with any company, does not need such trusteeship.

Thirdly, the Iranian authorities have lifted the restriction on mining for licensed market participants. The ban was introduced due to the increased load on the electricity grid, and many were concerned that this was just an excuse. However, now electricity is once again available to miners at one of the lowest tariffs in the world. The hashrate of the Bitcoin network has already surpassed September highs.

Image source: bitinfocharts.com

Image source: bitinfocharts.com

Of course, the above factors do not remove the risk of a new financial crisis and a collapse of most assets, as prophesied by Kiyosaki. However, the recent surge in the value of Bitcoin has led to the liquidation of short positions in futures only for Friday by $ 35 million. At the moment, the probability of the coin rising to $ 50 thousand is higher than the onset of the financial crisis in October.

Analytical group StormGain

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