The crypto currency market has made a huge rise in the last 24 hours. Behind this ascension, the US Federal Reserve (FED) interest policies, more moderate explanations, increasing investor confidence and large fund entrances from Bitcoin ETFs. However, some analysts say that critical levels should be preserved in order to maintain this optimistic atmosphere of the market.
FOMC Descriptions and Crypto Market Expectations
The last meeting of the US Federal Bank (FOMC) gave significant signals for investors. FED President Jerome Powell did not change interest rates, but did not show as much hawk as the market expected. Powell said that inflation is still high, but the pressure on the economy is gradually alleviated.
These explanations have increased expectations that interest rates may have recently decreased. In addition, US President Donald Trump also argued that interest rates should fall in his share on his social media account. These developments triggered the rise by increasing the investor confidence in the crypto market.
Demand for Bitcoin and ETFs is increasing
It has been observed that there was an intense interest in Bitcoin ETFs in recent days. Bitcoin Spot ETFs were about $ 11.8 million entry. This increased the confidence of investors to Bitcoin, while supporting the rise trend of the market.
On the other hand, exit from Ethereum ETFs continued and a total of $ 11.7 million in the last 11 days took place. This shows that the rise under the leadership of Bitcoin is not yet fully reflected in ETH and other subcoins. However, a positive atmosphere in the crypto market in general is dominant.
Crypto Short Liquidations and increased risk appetite
One of the other important factors of the rise in the market was the liquidation of short positions. Many investors opened Short positions, thinking that prices would fall further. However, when the expected decline did not occur, these positions had to close, which brought additional purchase pressure to the market.
In particular, Bitcoin approached $ 85,000 resistance and re -attracted the attention of investors. The crypto fear and greed index rose from 15 to 31, which shows that the market is in an optimistic mood. If Bitcoin can maintain these levels, more rise in the short term can be expected.
The biggest question in front of the crypto market is whether this rise is sustainable. If the expectations for interest rate cuts continue to strengthen, new peaks may be seen in Bitcoin and subcoins.
