The collapse of the price of Bitcoin (BTC) below $62,500 on March 22 contributed to an increase in buyer demand over the weekend, resulting in a rise in the price of the largest cryptocurrency by capitalization.
On Monday, the price of BTC increased by 4.38% to $67,177. The market capitalization was $1.33 trillion.
At the same time, analysts warn that the BTC market is entering a period of high volatility in anticipation of US data on the price index of personal consumer expenditures (PCE) and the possibility of halving Bitcoin.
On March 29, the United States will release the PCE data for February, which is key for the Federal Reserve (Fed) in determining inflation and the future course of monetary policy, according to CoinGape.
Also on that day, markets will be closely watching Fed Chairman Jerome Powell's speech at an event organized by the Federal Reserve Bank of San Francisco for clues on the US central bank's future course.
Currently, the CME FedWatch tool shows that markets are pricing in an 89.1% probability that the Fed will hold rates steady in May.
Glassnode, a leading provider of network data, warned on its X (Twitter) page of high volatility in the cryptocurrency market related to the upcoming halving. The company stressed that during this time, traders should pay special attention to monitoring the activity of exchange-traded funds (ETFs) as a critical indicator of short-term market sentiment. Glassnode highlights the importance of institutional demand generated by Bitcoin ETFs to mitigate the impact of the halving during this cycle.
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It's worth noting that many analysts and influencers in the cryptocurrency market expect Bitcoin to continue to rise.
Cathie Wood, CEO of Ark Invest, called BTC a "financial superhighway" and emphasized its importance in emerging markets. As an example, Wood pointed to Nigeria, where there has been a sharp devaluation of the local currency, and for many of the country's residents, Bitcoin is a risk-free asset that will protect their funds. The head of Ark Invest believes that in the long term, the price of BTC will reach 1.5 million dollars.
Crypto investor Luke Gromen said that the price of Bitcoin will grow significantly in the coming months due to a favorable macroeconomic background.
"I'm very bullish on Bitcoin for the next six to 12 months," he said.
Gromen attributed this to the fact that US government debt is at record highs and there is nothing the Fed can do to stop the resumption of inflation, which will lead to high demand for safe-haven assets, which now includes Bitcoin.