Bitcoin price: Steady increase
Early this morning (October 21), Bitcoin - the world's largest cryptocurrency by market value witnessed an upward trend, increasing slightly by 0.44% to 106,575.66 USD.
This new price contributes to bringing market capitalization to 2,206 billion USD, an increase of 61 billion USD. In the same direction, trading volume in the 24-hour reversal increased, currently at 57.61 billion USD, a sharp increase of 20.82 billion USD.
Assessment and forecast
Bitcoin is showing signs of stabilizing again as important macroeconomic pressures begin to " cool down". Bitcoin prices increased by nearly 2% in 24 hours, peaking at 109,405 USD, leading to a slight recovery in the cryptocurrency market, according to data from CoinGecko.
Peter Chung - Head of Research at Presto Research commented: "I think Bitcoin is building a bottom here and predict that the next direction is likely to be an increase rather than a decrease".
Potential gains came after the Fed shifted its dovish stance last week, with Chairman Powell revealing the possibility of ending the cycle of tightening quotas and considering cutting interest rates.
As the QT cycle nears an end, risky assets could benefit from easier financial conditions as liquidity narrowing slows down.
US-China trade tensions tend to ease after US Treasury Secretary Scott Bessent and Chinese Vice Prime Minister He Lifeng are expected to meet in Malaysia to ease tensions.
Sean Dawson - Head of Research at derive agreed with the above view but warned that risks still exist. He believes this could be a local bottom, as falling interest rates gradually attract investors to risky assets such as cryptocurrencies. However, the escalation of the trade war could still cause Bitcoin prices to continue to fall.
The near future of Bitcoin depends on the inflation report due on October 24, but US-China trade negotiations play a more important role in orienting market sentiment.
