Bitcoin’s 12% Price Rally on Thursday Was The Biggest Since February 2022

On Thursday, the value of the cryptocurrency climbed approximately 12%, reaching a peak of $61,720 – marking its largest one-day increase since February 28, 2022, when it had risen by more than 14%. This significant growth was observed on TradingView, a charting platform. Furthermore, the overall crypto market capitalization experienced an increase of 11%, reaching $2.11 trillion – this is the largest single-day jump since November 10, 2022.

The majority of gains occurred during American trading sessions due to surprising drops in U.S. jobless claims that diminished concerns about a recession, causing U.S. stocks to surge. Additionally, Wall Street’s anxiety gauge (VIX) dropped to 23, providing encouraging signs for risky assets like cryptocurrencies. Notably, the upward trend of the safe-haven Japanese yen halted as the Bank of Japan expressed reluctance towards immediate interest rate increases.

In the past week, U.S.-traded investment funds known as spot exchange-traded funds (ETFs) received a record $194.6 million from investors – the most since last July, according to Farside Investors. Notably, BlackRock’s IBIT ETF attracted an impressive $157.6 million in investments alone.

Last week, stocks and bitcoin started experiencing losses following the Bank of Japan’s decision to increase interest rates. This move led to the unraveling of yen carry trades, causing anxiety about the Japanese economy and further worries concerning the U.S. economy. On Monday, selling pressure escalated so significantly that bitcoin dropped as low as $50,000, a stark contrast from its recent high near $70,000 only a week prior.

Based on findings by blockchain analysis company Santiment, significant Bitcoin holders (often referred to as “whales”) appear to have purchased Bitcoin during the recent price drop on Monday.

Moving forward, a significant hurdle for the bulls is set at $61,800, as per Alex Kuptsikevich, a seasoned market analyst at FxPro.

If the price climbs above $61,800, it might stimulate buyers to swiftly push prices up to around $67K. Conversely, a drop below this level could lead to a situation where we revisit the region of the prolonged July and August lows close to $55,500. Kuptsikevich explained this to CoinDesk via email, noting that $61,800 is significant because it represents the intersection of the 50-day and 200-day simple moving averages.

According to Two Prime Investment Advisors, a positive outlook (bullish bias) persists as long as the price stays above $54,000. The course of future significant price fluctuations will depend on geopolitical events and Federal Reserve policies.

“We’re keeping an eye on the $54,000 region as a critical support point, with $50,000 serving as the next level down. So far, these price points have held firm, and there has consistently been demand whenever bitcoin has approached this area – according to Two Prime in a message to their clients via Telegram.”

As a crypto investor, I find myself in a state of cautious anticipation, watching closely as tensions between Israel and Iran unfold. I can’t help but wonder if this conflict might escalate further, and if so, how the U.S. government may respond to mitigate risks in both the geopolitical landscape and the monetary policy of the Federal Reserve.