Bistonia Estates LLC experts give a brief description of the main factors that should be taken into consideration while assessing the prospects of its value

Why is bitcoin getting more expensive
The crypto market is simultaneously influenced by a large number of factors.

-Waiting for Fed policy change
March inflation in the United States in annual terms was 5%, which was the lowest value since May 2021. According to preliminary estimates, the growth rate of consumer prices will continue to decline. This reinforces the hope that at the next meeting the Fed will refuse to raise the base rate, or at least raise it for the last time in this cycle. Similar expectations have already been reflected in the US bond market, the yield on which is falling. Investors are reawakening their appetite for risk.

-Banking crisis
The problems that the American banking system is going through will not only push the Fed to soften its position, but have already helped the market with liquidity. “One of the reasons for the rise in the price of bitcoin is, no matter how strange it may seem, the bankruptcy of American banks. More than $350 billion worth of additional funds have been printed by the Fed to support the banking system.

-Search for a "safe haven"
Despite the fact that cryptocurrencies are considered one of the most risky investments, many investors run into them from other assets. The banking crisis has shaken confidence in the classical financial system, which provoked the flow of funds into cryptocurrency.

Also, according to the Bistonia Estates experts, the reporting season of companies on the stock market, most likely, will not please investors and may well become the worst since the pandemic. “Revenues are projected to fall by about 6%. It also encourages investors to look for alternative assets and Bitcoin, which has grown significantly since the beginning of the year, is well suited for this.

What's Next for Bitcoin
First of all, the price of the main cryptocurrency will depend on inflation indicators and statements, or at least hints, by the Fed regarding its readiness to soften its position. If the market receives such signals, it will give fuel to strengthen the position of cryptocurrencies.

The cryptocurrency market is traditionally highly volatile and there have already been sharp changes in trends on it more than once. At the same time, “whales” that last year sat in cold wallets began to return to the market. And this can speak much more clearly about the end of the crypto winter than a rise in the price of bitcoin by several thousand dollars.

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