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Why Did Bitcoin (BTC) Price Soar Today? Here are Analysts’ Theories

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Why Did Bitcoin (BTC) Price Soar Today? Here are Analysts’ Theories

Bitcoin, the world’s leading cryptocurrency, started the last week of March on a high note, with an increase of approximately 6% and reclaiming the $ 70,000 level.

According to CoinMarketCap data, BTC price was last recorded at $70,701, an increase of 7.66%.

Another major cryptocurrency, Ethereum, also saw a significant increase, rising 5% to $3,631. The positive trend was not limited to these two, as most other cryptocurrencies also got caught up in the Bitcoin wave.

This increase follows a one-week correction for Bitcoin, which hit an all-time high of $73,797.68 on March 14. Alex Thorn, head of firmwide research at Galaxy Digital, told investors that such declines are “within the norm of historical bull market short-term corrections.”

The exact reason for today’s significant rise remains unclear. However, Bitcoin’s price action in March was characterized by healthy pullbacks followed by new highs. Thorn suggested that investors may have taken a break from selling their Bitcoin ETF shares.

“Record GBTC outflows over the last two weeks, likely driven by the Genesis and Gemini bankruptcy liquidations, contributed to the weakness in spot prices, but several technical indicators pointed to sellers being exhausted,” Thorn said.

Sam Callahan, chief analyst of BTC services firm Swan Bitcoin, suggested that the rise could be linked to recent messages from the FED. “FED officials made clear last week that they are considering both interest rate cuts and reducing the pace of the quantitative tightening program this year,” Callahan said and added:

“Such actions will improve liquidity conditions and act as a positive catalyst for asset prices. Bitcoin serves as a barometer of liquidity conditions and has responded positively to the Fed’s message that monetary policy will likely ease in the near future.”

*This is not investment advice.