The crypto market witnessed a significant upside momentum on Monday, starting the week on a positive note. The global crypto market cap increased by over 3%, supported by a 100% jump in the trading volume. Traders anticipated a rebound in the coming weeks, but Bitcoin and Ethereum finally jumped over $17,000 and $1,300. Here are the top reasons supporting the crypto market rebound.
Has the Crypto Market Actually Turned Bullish?
The major reason behind the crypto market rally is a slowdown in wage growth and a contraction in services sector activity in the U.S., indicating less aggressive rate hikes by the Federal Reserve.
Moreover, Bitcoin and Ethereum prices held strongly above the key support levels despite a crucial last week. Also, crypto prices saw an upside momentum after the release of FOMC Minutes.
Several macroeconomic factors hint at slowing inflation and recovery in the global economy. The reopening of international borders by China and efforts by other central banks to ease inflation have boosted investors’ sentiment. As a result, stock markets in Asia and Europe are opening in green today.
Furthermore, the U.S. dollar index (DXY) fell lower to 103.43 in the last 24 hours, causing the Bitcoin price to rally above $17,000. However, volatility can be expected this week due to a number of turnaround events.
Financial services giants BlackRock and Morgan Stanley are indirectly boosting Bitcoin prices by increasing holdings of GBTC and crypto companies’ shares in their funds.
Crypto Analysts’ Prediction on Bitcoin and Ethereum Prices
Bitcoin price is trading at $17,210, up nearly 2% in the last 24 hours. Meanwhile, Ethereum price has soared nearly 4% in the last 24 hours, with the current price trading at $1,308.
Crypto analysts such as Michael van de Poppe have earlier pointed out that Bitcoin and Ethereum prices can rally until the next FOMC rate hike decision on February 1. Altcoins are likely to follow the rebound in the dominant cryptocurrencies. However, a slide could be seen in the next month.
According to crypto analyst CredibleCrypto, the ETH price will fall below $1,080. While $1,170 is the best level to buy Ethereum for the long term, whales expect Ethereum accumulation below $1,100. However, he also said that the ETH price may not hold below $1,170 and will rebound soon.
Also Read: Cardano (ADA) and Solana (SOL) Lead Altcoin Rally
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