- The declaration of “crypto emergency” by the Biden administration drives the price of Bitcoin and major cryptocurrencies upwards.
- Analysts predict an increase in Bitcoin value due to halving and Chinese New Year.
This scenario for Bitcoin and other major cryptocurrencies, such as Ethereum, XRP and Solana, which have seen a sudden increase in value, is due to a declaration of “crypto emergency” by the Biden administration.Â
This announcement has spurred a growth in the market, raising the price of Bitcoin to around $45,000 per unit and exerting a positive influence on the cryptocurrency market in general.
The anticipation of the upcoming Bitcoin halving event, an event that typically precedes changes in cryptocurrency prices, along with the Chinese New Year, has been identified by analysts as a reliable indicator of a possible increase in Bitcoin’s value.
Markus Thielen, head of research at 10x Research, notes that, historically, acquiring Bitcoin three days before and selling it ten days after Chinese New Year has resulted in an average return of 11% over a two-week period. This pattern suggests a bullish trend for Bitcoin in relation to this cultural event.
Other market factors, such as the expected interest rate cut by the Federal Reserve, the launch of a series of Bitcoin exchange-traded funds (ETFs) in the United States, a shift of investment away from China due to its market crisis, and the impending halving of Bitcoin supply in April, all present themselves as elements that will drive Bitcoin’s price.
David Kemmerer, CEO of CoinLedger, expresses positive sentiment towards the cryptocurrency market, highlighting the growth and recovery of the sector after the price decline caused by the FTX collapse.Â
This rebound enhances the strength and recoverability of the cryptocurrency industry, marking a departure from the average losses experienced by crypto investors in 2022 and signaling average gains in 2023.
