Bitcoin Surges 8.5%: CME Group Predicts Further Rate Hikes, Institutional Funds Flowing In
Today, Bitcoin (BTC) is trading up about 8.5% from Tuesday's closing price, with the asset currently trading near its midpoint for the past five-days. The coin is up $1921.58, or 8.64%, to $24172.77 and is 4.82% off its five-day high and is 3.65% higher than its five-day low of $21460.09. This marks the asset's highest level since August and is close to its 61.8% fibonacci retracement at $25,967 on its 12H price chart.
The surge in Bitcoin is attributed to mild accumulation from 100 to 1,000 BTC traders and a decrease in risk aversion that helps to temper concerns about a widening crackdown by US regulators. The world's crypto market capitalization is currently at 1.07 trillion USD, which is a 0.57% rise from the previous day. The crypto market volume for the last 24 hours is estimated to be 50.09 billion USD, a 2.42% increase from the previous day.
The CME Group's analysts forecast that there is a greater than 90% likelihood that the Federal Reserve will increase rates by 25 basis points at its gathering next month. Interest rates in the United States are at their highest level in 15 years, sitting between 4.5% and 4.75%. The Federal Reserve has indicated that it could raise rates up to 5% in order to bring inflation back into its target range.
On Wednesday, February 15, the prices of altcoins rose in tandem with Bitcoin. Ethereum (ETH), the second-largest cryptocurrency globally, is up by 9% and trading at a price of $1,686. Currently, ETH has difficulty surpassing the $1,700 mark. BNB rose 7.1% to US$317.39 as well.
Nearly $1.6 billion in institutional funds have flowed into the crypto market over the past six days, mostly from stablecoins like Circle-issued USD Coin (USDC). Whales have also taken the dive, transacting at their highest rate in three months.
In conclusion, Bitcoin has had a strong start to the year with the cryptocurrency seeing a huge rally. The Fed's interest rate hikes, the Nasdaq's 16% increase year-to-date, and the decreased risk aversion all contribute to the rise in BTC prices.
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