Crypto prices since this morning started rocketing from the $19K level to the $20K level. This indirectly indicates bullish sentiment. Bitcoin and the altcoin market both surged, reversing the frustration of market players.
As already known, the discussion continues about what has driven the price increase in the crypto market and how long will this situation last? According to Arthur Hayes, the co-founder of BitMEX believes that the US Treasury is the reason behind the strong rise in the crypto market.
Hayes explained that the US Treasury is considering supplying the market with short-term treasury bills to offset any shortages. Additionally, crypto prices are soaring as macroeconomic conditions improve and become better. The US dollar index, which measures the greenback against six major currencies, began to trade weakly. In the last 5 days, the US dollar Index fell by 1.77%. The crypto market increased during the same period as well.
Michael van de Poppe, CEO of Eight Global and a leading market expert, also emphasized that yields have started to fall in line with the depreciation of the US dollar. Crypto prices had previously fallen following the strengthening of the US dollar and concerns about global financial instability.
Second, crypto prices have responded positively to changes in the UK's political-economic climate. Liz Truss's budget caused chaos in the UK economy. Therefore, when he was replaced by former Chancellor Rishi Sunak, the market reacted positively.
Additionally, Sunak is widely known as a pro-crypto figure in UK politics. nited Kingdom voted in favor of recognizing Bitcoin and crypto as a legal payment method. Sunak wants to make the UK the world's crypto hub. However, there are still certain crypto influencers who are criticizing the UK PM for his support for Central Bank Digital Currencies.
Crypto prices after this will depend on whether the next interest rate decision by the Fed is on November 2, 2022. At the same time, several technology companies such as Apple will report their third quarter earnings. A bad earnings report can result in negative sentiment towards the crypto market.
