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The bitcoin price has approached $20,000 per bitcoin for the first time since the FTX crash, up nearly 20% from last week (though these smaller cryptocurrencies are leaving you in the dust).
Now, like the Bitcoin & Crypto Fear and Greed Index, closely watched goes up At its “greediest” point in four months, traders are wondering how far this bitcoin price rally will go and whether the recession that saw $2 trillion wiped out of the combined crypto market could finally end.
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“The near-term outlook for bitcoin looks bright as the recent break of $18,000 will likely call some technical traders back into the market,” Yuya Hasegawa, a Tokyo-based crypto analyst at Bitbank, said in emailed comments. email and noted rising expectations that cooling inflation will mean the Federal Reserve will slow the pace of expected interest rate hikes.
“It was also a bit of a surprise and relief that Fed Chairman Jerome Powell refrained from mentioning details of future monetary policy in his speech in Sweden this week and did not criticize the market’s somewhat premature hope for rate hikes. slower”. Hasegawa added, but warned that Fed officials could push the market back, “a recurring pattern since late last year.”
The bitcoin price suffered massive losses through 2022, exacerbated by the collapse of several cryptocurrency companies and culminating in the implosion of major cryptocurrency exchange FTX.
However, in the last two years, there has been bitcoin adoption on Wall Street, with some of the biggest financial giants beginning the slow process of entering the bitcoin and crypto markets.
“It is often forgotten that institutional investors have significant lead time when taking bitcoin positions,” Tycho Onnasch, founder of institutional bitcoin lending protocol Zest.
“Many institutional investors who became interested in taking a bitcoin position during the 2021 frenzy have finally completed their internal processes that allow them to start trading bitcoin. Institutions can’t just start Coinbase and make 7-figure bitcoin purchases on the spot. market when bullish news. They have lengthy processes to set up custody, find brokers, set up execution management systems and more that make their moves possible.”
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Meanwhile, others expect the flow of institutional investors into bitcoin to continue this year.
“We will see continued adoption of bitcoin and crypto in traditional banking and finance,” Alex Adelman, CEO of bitcoin rewards app Lolli, said in emailed comments.
“Industry leaders launching crypto services in 2022 like BlackRock, Fidelity, and more set a new crypto precedent for Wall Street that will spur competition among traditional institutions to launch an ever-growing suite of crypto products and services.”