Bitcoin
$106,534.72
climbed past $111,000 on May 22, which marks a new milestone even as US stock markets slipped.
One key reason is the growing belief that Bitcoin can act as a safe alternative when traditional currencies or markets seem shaky. Moody’s recent downgrade of US government debt added to those concerns, which pushed some investors to look for other places to put their money.
On top of that, calmer trade relations between the US and China have created a better environment for digital assets like Bitcoin.
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Lower inflation numbers in the US have also helped. With less fear of aggressive interest rate hikes, investors have shown more interest in stocks and cryptocurrencies.
Bitcoin’s strong performance is not just about the news cycle. Its technical indicators also support the price surge. After breaking through $109,000, it passed several key resistance levels. The Fear and Greed Index shows investors are confident, but not overly so. The RSI is near 70, which suggests healthy buying interest.
James Butterfill from CoinShares told CNBC that Bitcoin’s rise was “driven by a mix of positive momentum, growing optimism around US crypto regulation, and continued interest from institutional buyers”.
According to a report from Forbes, Austin King, co-founder of Omni Network, pointed to three major forces driving Bitcoin’s rally.
First, demand from US-based spot exchange-traded funds (ETFs) has been high, with inflows in May alone topping $3 billion. Second, new laws like the bipartisan stablecoin bill in the Senate and Texas’s idea of a state Bitcoin reserve make investors feel more confident about long-term holdings. Third, ongoing inflation concerns push everyday and institutional buyers to look at Bitcoin as a hedge.
Saifedean Ammous, author of The Bitcoin Standard, recently joined a discussion on how to handle spam on the Bitcoin network. What did he say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
