In the past 24 hours, Bitcoin has risen by 4%, surpassing the $84,000 mark, coinciding with improvements in financial markets.
Bitcoin's Rise and Macroeconomic Influences
Bitcoin briefly reached $85,000 before pulling back. The rally was driven by a broader recovery in risk assets amid macroeconomic stability and the avoidance of a U.S. government shutdown. Strahinja Savic from FRNT Financial notes that macroeconomic stabilization is aiding the recovery of cryptocurrencies.
Investors' Role in Crypto Market Recovery
Savic also points out that some investors took the opportunity to 'buy the dip', further strengthening the market.
Geopolitical and Economic Factors
Bitcoin's rise came after Senate Minority Leader Chuck Schumer expressed support for a Republican funding measure. Significant geopolitical risks and trade tensions due to tariffs imposed by Donald Trump, along with other economic concerns, are weighing on investors. The University of Michigan Consumer Sentiment Index fell to its lowest level since 2022, impacting the market.
Despite the current bullish momentum, Joe DiPasquale warns of ongoing volatility, which could lead to significant corrections.
