Learn about the possible reasons behind the rise of Bitcoin above the 47 thousand dollar level
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Answer Learn about the possible reasons behind the rise of Bitcoin above the 47 thousand dollar level
A lot has already happened in the crypto market and in a relatively short period of time.
In the past seven days alone, the price of Bitcoin has soared to its highest level in 3 months, benefiting from levels not seen since January 2nd.
Here is a closer look at three possible reasons behind Bitcoin’s recent gains:
Tera and buy bitcoin:
The announcement by the Terra project team appears to be the primary catalyst for the recent bitcoin price increase as bitcoin purchases continue to emerge.
Do Kwon, co-founder and CEO of Terraform Labs, the company behind the Terra protocol, has revealed an intention to buy $10 billion worth of Bitcoin over time.Read:Ethereum Developer Reveals Timeline for Final “Merge” Upgrade
P2P e-cash is easy to spend and more attractive to keep #btc
– Do Kwon 🌕 (stablekwon) March 14, 2022
While not many are taking this seriously, Kwon said they have $3 billion in funds ready to start in this reserve.
A few days later, bitcoin purchases actually started appearing.
Terra has been buying bitcoin in batches of $125 million, leading some analysts to believe there will be an incoming supply shock soon, which brings us to the second reason.
Bitcoin supply shrinking:
User Pentoshi commented about his Bitcoin purchase of Tera:
2.5-3 thousand BTC per day have been removed from supply over a long period of time and there will be a huge impact.
At the core of what Analyst Pentoshi is talking about is the concept of a supply shock, in which demand severely outstrips supply, which puts pressure on the price upwards.Read:Binance platform launches a new tool for spot trading “Grid Trading”…details here
Additionally, market data showed that the bears were unprepared for this move.
As mentioned earlier today, Bitcoin’s volatility has wiped out over $410 million of liquidations in the past 24 hours, of which about 80% were short positions.
Overall market sentiment turns positive:
Bitcoin, as well as the entire cryptocurrency market, is still largely tied to Wall Street.Read:Bitcoin trading volume on Binance breaks all-time high
Over the past five days, some of the largest indices in the US, including the S&P 500, Nasdaq and Dow Jones Industrial, have been trading in the green.
In addition, technology companies such as Tesla have also made significant gains.
TSLA stock is up for the ninth day in a row, posting a whopping 35% rise in the same period.
This could mean that investors become more likely to trade risky assets, and that Bitcoin fits perfectly into this category.
In general, it is important to be very careful because the price is currently hovering around the monthly close.
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