Key Takeaways:
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Bitcoin tends to rally dramatically when low seizures meet more powerful than expected retail sales and hawkish federal reserve signals.
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In three separate 7-week periods, Bitcoin increased by 50% to 84%.
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The upcoming speeches from Fed Chair Jerome Powell can benefit the price of Bitcoin.
Bitcoin (Btc) Price rallies are often linked to inflation concerns of investors or data beyond expectations for economic growth, but the clear signals of an upcoming rally are rare. However, a combination of three independent events includes history that in conjunction with BTC prices of 50% or more.
Significant Bitcoin rallies occur when the expectations of the federal federal policy policy are easy, the crypto market seizure is low, and strong retail data supports bullish momentum. The last emergence of these three events has seen the price of Bitcoin prices from $ 40,000 to $ 73,500 to seven weeks in early 2024.
Comparable gains were recorded in early 2023, when both three drivers were aligned, pushing Bitcoin from $ 16,700 to $ 25,100 in seven weeks. A third example was dating in July 2021, ending with a 76% price increase.
Bitcoin gained 84% from January 25, 2024, until March 13, 2024
After stagnating near $ 43,000 in December 2023, Bitcoin prices tried $ 48,000 levels in early January 2024. The failed breakout was followed by a sharp collapse at $ 37,800 in late January, as a seven-week bullish trend began. An important factor at this stage is the extraordinary low forever The rate of funding of futuresseated at 4% per year.
Other factors affecting price return are US sale data for December 2023, released on January 17, 2024, exceeding expectations, rising 0.6% month-to-month compared to the 0.4% forecast and US Federal Reserve Chair Jerome Powell’s Jan. 31, 2024 Press Conference already, signed a lighter financial stancewith no immediate reduction in interest rate.
Bitcoin gained 50% from January 3, 2023, to Feb. 20, 2023
Prior to this rally, Bitcoin was combined below $ 18,000 for two months, resulting in little demand for leveraged long positions, as can be seen in a close zero eternal rate funding of futures.
The landscape moved on January 3, 2023, when the funding rate in Binance rose 50% in four days. This coincides with the stronger-than-anticipated retail sale data for January 2023, which increased by 3% month-to-month, exceeding the 1.9% consensus. Notably, Fed Chair Powell also suggested a lighter financial policy to fight inflation during his speech at Sveriges Riksbank on January 10, 2023.
Bitcoin 76% Rally: July 20, 2021 – Sept. 7, 2021
From July 20, 2021, to Sept. 7, 2021, Bitcoin gained 76%. The price of Bitcoin dropped from $ 40,000 to bottom $ 30,000 last month, Dampening Market Sentiment. Suddenly, the annual rate of Bitcoin funding jumped from 0% to 37% in two weeks, while US retail sale data for June 2021 surprised economists by rising 0.6%, even though the consensus was predicted by a 0.4% decline.
During this time, Powell’s statements at the Jackson Hole Economic Symposium on August 27, 2021, indicate a potential reduction in central asset purchases, which is a step aimed at curbing inflation.
Related: Ray Dalio said the global financial order ‘on the Breakdown’s Brink’
The next potential bitcoin -upswing
The standard thread that relates to these significant rallies is a reduction in expectations for expanding the federal reserve policy and initially low demand demanded from the Bitcoin Bulls. When these factors coincide with stable retail data, they create perfect conditions for a Bitcoin Bull run, as merchants tend to remain careful ahead of possible economic collapse.
At the forefront, the Fed Chair Powell is set to speak on June 18 following a decision of interest to the central bank. The additional basic dates include the release of the Beige book on July 16 and the Jackson Hole Economic Symposium starting August 21. Monitoring of retail sales data for May, since June 17, and for June, due to July 15, will also be important.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
