Bitcoin (BTC), at the beginning of the week below the level of $ 79 thousand after the recovery began to give signals. The leading crypto currency increased by 1.4 %in the last 24 hours to $ 83,800. With this rise, more than $ 72 million liquidation took place in the term transactions, especially in short positions.

Positive Inflation Data

Light recovery in the US stock exchanges in recent days was reflected in the Bitcoin market. The increase in the S&P 500 and NASDAQ indices was supported by the fact that inflation data was better than expected. According to the data announced by the US Office of Statistics, consumer prices rose below expectations.

This development increased the risk appetite in the markets and revived the interest in Bitcoin. The improvement in traditional markets supported the price of BTC by increasing the confidence of investors in crypto assets.

Balancing the market

The crypto currency market began to follow a quieter course after the great liquidations at the beginning of the week. Particularly in long positions, high liquidations caused the market to decline. However, with the decrease in this harsh sales pressure, there was a suitable ground for the recovery of Bitcoin.

In addition, the amount of open position in Bitcoin futures increased by 4.45 %in the last 24 hours and rose to $ 50 billion. This shows that investors have begun to re -purchase and the market has entered the recovery process.

Effect of Gold Prices

Gold prices, reaching the highest levels in the history of the week approached 3 thousand dollars. Bitcoin has long been seen as “digital gold ve and the rise of gold has a positive effect on the price of BTC. As the search for safe harbor in traditional markets increased, investors began to turn to Bitcoin.

This tendency makes Bitcoin seen as a protection tool against global economic fluctuations. It is observed that the demand for both Gold and Bitcoin has increased, especially in uncertain market conditions.

What’s next for Bitcoin?

Bitcoin has experienced a correction of close to 30 %since the second period of US President Donald Trump. However, this decrease may indicate that the market has entered a pause process before continuing its long -term rise tendency. The US government’s plan to create strategic Bitcoin reserves increases positive expectations in the markets.

Nevertheless, Bitcoin purchases of major investors are still at low levels. US Spot Bitcoin ETFs experienced a release in the fifth week. In addition, the fact that the Bitcoin supply in the central exchanges remains constant shows that large investors are cautious about purchasing.