"Hmm understand understand, does that mean that now many people expect the US debt to increase again?"
Before recovering above $66,000, the price of the king of cryptocurrency Bitcoin (BTC) yesterday suddenly fell to $64,595 due to the actions of whales that released more than 21,000 BTC this week.
Even so, a big factor that could drive the BTC price increase is the increase in the debt of the United States (US) following the current huge amount of US debt amounting to $34.5 trillion has raised concerns about the deterioration of government assets.
Therefore, investors are found to be more cautious towards the traditional financial market plus there is uncertainty regarding the decision of the Federal Reserve (Fed) to lower interest rates or not.
As the rising US debt raises concerns about the devaluation of the currency, many people are more likely to shift their capital into the crypto market and this can be seen as the amount of money flowing into the digital asset rose to $2.4 billion from $1.2 billion.
However, it should be noted that all eyes are now focused on the latest Federal Open Market Committee (FOMC) decision including the speech by Fed Chairman Jerome Powell scheduled for March 20, 2024.
Those important events have led to cautious trading in the crypto market as investors brace for potential short-term volatility or weak trading conditions.
Like to be informed that many organizations predict that BTC will see a significant rise where Bitwise expects its price to surpass $80,000 in 2024 while Coinbase thinks that institutions in BTC can be the main focus in the first half of 2024.
As of this writing, BTC price has surged 2.77% to $67,393 in the past 24 hours with a market cap of over $1 trillion but is still down 0.63% over the past week.
