Bitcoin Exceeds $26,000. Why Is It Rising? Can It Move Towards $30,000?

With the release of US inflation data, Bitcoin accelerated its rise that started on March 12, and Bitcoin exceeded $ 26,000 for the first time since June 2022. The crypto market followed the rise of Bitcoin. US inflation was announced at 6% annually. In February, prices were 6% higher than a year ago, but lower than the 6.4% annual rate in January and significantly below the 9.1% inflation peak seen in June 2022. This shows that inflation is starting to slow down. The fact that the inflation data were parallel to the expectations of the markets caused the money markets, especially the crypto markets, to move.

Now the markets are focused on the Federal Reserve System (Fed)'s meeting next week. Although the expectations that the Fed will not increase interest rates in the rest of the year gain strength, the expectation that there will be a 25 basis point increase in interest rates at the meeting to be held next week is more. On the other hand, expectations that the Fed will cut interest rates as of the second half of the year are gaining strength. The meeting of the FED and the statements to be made next week are very important because on the one hand, there is the looming banking crisis.

Bitcoin is currently trading at $26,166. And it went above $26,000 for the first time since June 2022. With the effect of consecutive FUD and negative news in the past days, Bitcoin quickly dropped to $ 19,500, and in a short time, Bitcoin managed to regain what it lost and gave confidence to its investors.

On the one hand, there is the looming banking crisis and this should not be taken lightly. On the one hand, trust in banks is declining, but trust in crypto seems to be increasing. Therefore, the decisions of investors in the coming days will significantly affect the crypto market.

If the Fed's interest rate decision does not exceed 25 basis points and Bitcoin continues to stay above $25,000, it seems that Bitcoin may move to new highs in March. I'm especially curious if it can reach the major resistance at $30,000 because I think this resistance will be a breaking point. We'll wait and see.

This is not investment advice. You should do your own research before investing.

• LeoGlossary

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