The present market cap of the whole crypto market is not at its best; crypto assets have been seeing the worst price action for many weeks now. The present corrections and the bear market that has followed as a result don’t seem to be ending anytime soon, and that is putting pressure on the investors to take away their investment from the crypto market and use it somewhere else.
Bitcoin also saw the worst of its price action, but for a few days now, it has sustained its price point with a 6-week all-time high rebound apparent from its current price momentum.
It seems that the dark hovering clouds of the bear market might finally shun away, and investors would once again be able to put their trust in the flagship cryptocurrency. The present price of Bitcoin is a little above $23k, indicating a direct 4% increase in the last 24 hours or so. This definitely is a glimmer of hope, but it is not something to call home about.
Despite the present price gain, bitcoin has lost more than 48% of its market cap, which is not a pleasant scene at all, and on top of everything else, the asset has lost 60% of its price performance, coming down from an all-time high of $68K.
Bitcoin’s Price and US Inflation
To cut through this uninvited descent of the US economy into inflation, the Fed has incurred an interest rate of 75 base points into the second month. This is done to ensure that somehow with more interest rate, the element of inflation could be tackled in its most absolute capacity.
This has allowed for a reversal in the price of Bitcoin; it might be temporary as it seems, but anyway, it is a good sign that something has moved the price of Bitcoin, which seemed unmovable at first. According to many crypto analysts, the next possible target for Bitcoin should be the $27K range, and if it becomes successful in doing so, then it could become the reason to break the bear market for good.