Bitcoin price is back at six-week highs, and BTC is targeting $21,000. Here are three reasons why the crypto markets are surging.
After drifting lower for months and spending recent weeks in a tiny trading range, BTC/USD has delivered 24-hour gains in excess of 7%.
Hitting its highest levels since mid-September, the largest cryptocurrency is rewarding those who refused to sell and punishing shorters to the tune of around $1 billion.
The trend change came quickly and caught many by surprise, as evidenced by that liquidation tally.
Behind the scenes, however, little has changed — macroeconomic conditions have not undergone major upheaval compared with a week ago, and internal problems for Bitcoin, such as miner strain, remain the same.
The Fed could change its tune on rate hikes
The worst-case scenario for risk assets was unshakable policy maintaining the U.S. dollar strong and rates racing higher for the foreseeable future.
However, over the past week, the effects of that strategy have spread to other economies, particularly Japan, which frequently intervened in its exchange market to support the faltering yen.
Bitcoin volatility snaps record low levels
Analyzing data from Cointelegraph Markets Pro and TradingView, it becomes clear that BTC/USD has been too quiet for too long.
This is especially visible in the Bollinger Bands volatility indicator, which has been rarely closer together in Bitcoin’s history and demanding a breakout for weeks.
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