Since October 1, the price of Bitcoin has increased by more than 25%. It returned above $50000 and gives hope for a return to April highs. After a detailed analysis of the situation, JPMorgan analysts were able to explain what caused the current rise in the price of Bitcoin.
After a long pause, large investors resumed buying Bitcoin. Against the background of the decline in the price of gold, large investors began to buy Bitcoin again.
After big investors made big profits in early 2021, pushing Bitcoin to its high of around $65000, they left the market. Now Bitcoin has turned from a speculative instrument to an investment one, large investors are coming back to the market. Moreover, such investors can keep buying because they see Bitcoin as a better alternative to gold.
If we compare the dynamics of the gold and Bitcoin prices, we’ll see that since the beginning of the year, the price of Bitcoin has increased by 90%, while the price of gold has decreased by 6%.
Also, large investors received relief after the words of the head of the Fed, Jerome Powell, who said that the Fed is not going to ban cryptocurrencies but will make stablecoins more regulated.
On the chart, the bears are trying to push the Bitcoin price below $55000. However, the level of 53000 provides enough support to stop the Bitcoin price correction.