What are the key factors behind Bitcoin’s recovery?

During the National Day holiday, Bitcoin rebounded strongly and once exceeded $55,000. What are the key factors behind it?

On October 2, Neel Kashkari, chairman of the Minneapolis Federal Reserve Bank of the United States, said that he did not think the Fed needed to raise interest rates before 2024. After the news came out, the market was expected to have loose policies, and Bitcoin rose for a short time under positive sentiment.

In addition, the US banking giant JP Morgan Chase also comprehensively outlined some of the key reasons behind Bitcoin’s recent rebound. JPMorgan Chase pointed out that Fed Chairman Powell made it clear that the Fed has no plan to crack down on cryptocurrencies, which is considered to be the main factor in the recent price surge. You should know that the National Development and Reform Commission, the Central Bank, etc. have previously issued successive notices to rectify the mining and virtual currency trading hype. After the news was sent, the market hype faded and the encryption market went down as a whole.

However, compared with China’s regulation, experts in the encryption field are more worried about US regulation. Meltem Demirors, chief strategy officer of CoinShares, pointed out in an interview that the greater risk is that US regulators follow China. At the same time, US regulators have also increased their attention to the encryption industry. The chairman of the US Securities and Exchange Commission Gary Gensler has been calling for the regulation of the crypto market, and the US Securities and Exchange Commission has worked overtime to develop a set of rules to do this. Others, including Fed Chairman Jerome Powell and US Treasury Secretary Janet Yellen, also expressed concern about the area.

After Powell made it clear that the Fed had no plans to crack down on cryptocurrencies, the crypto market’s anxiety has ushered in a great improvement. In addition, the chairman of the US Securities and Exchange Commission Gary Gensler also stated that his institution has neither the authority nor the intention to ban digital assets at the hearing.

It is worth mentioning that JPMorgan Chase also believes that the rapid adoption of the Lightning Network has also promoted the rebound. Mainly due to El Salvador and Twitter, the adoption rate of the second-tier payment track has increased significantly.

Earlier news showed that Twitter has integrated Bitcoin through the Lightning Network and enabled the Bitcoin tipping function for iOS users. The tipping function will rely entirely on third-party payment services, such as the Strike app. The latest news on October 8th revealed that Twitter’s “tip” function has been opened to all IOS users. Users can find the “tip” option on their profile page (the default state is “off”) to activate it.

In addition, news on October 7 revealed that Open Bank Project, API3, Qredo & Sovryn and Banco Hipotecario have formed an alliance to promote the Bitcoinization of El Salvador.

Finally, investors’ concerns about inflation reappeared. According to news on October 4, as the dollar and U.S. Treasury bond yields rose slightly, U.S. inflation data was higher than expected and manufacturing activities were strong, and gold stabilized. At the same time, Bitcoin is gradually replacing gold as a hedge against inflation, renewing interest in using Bitcoin as a hedge against inflation. Galaxy Digital CEO Mike Novogratz also predicts that the market value of Bitcoin will exceed the market value of gold within a few years. 

It is worth mentioning that the latest news shows that the US Securities and Exchange Commission has approved the Volt encryption industry revolution and technology ETF, which allows investors to easily access a large number of companies holding Bitcoin.

In addition, Mike Novogratz, CEO of Galaxy Digital, recently predicted that by the end of 2021, Bitcoin will rise again. He claimed that horses turning near the finish line tend to win. So towards the end of the year, the great asset classes and the best performing asset classes usually have a good ending.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-are-the-key-factors-behind-bitcoins-recovery/
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