Bitcoin: Will This Rally Last?

The price of bitcoin (BTC) has had a healthy increase this month, climbing by about forty percent since the beginning of the month. But that leaves open questions about the durability of this rise and whether or not the price of bitcoin will continue to surge from this point forward.

Bitcoin's Price

The price of Bitcoin has not yet recovered from its precipitous drop after reaching an all-time high of $68,904 in November 2021. The crash in cryptocurrency values was brought about by a variety of factors, including the ultra hawkish-monetary policies of the Federal Reserve and the big failures of cryptocurrency fraud schemes like Celsius. Nevertheless, the BTC price has staged a respectable rebound this month, rising dramatically from last month's low of $16,263 to this month's high of $23,324.

Why Has There Been Such a Big Jump in Price?

It is imperative that I first discuss the fundamentals that are the driving force for the present rally before I begin to discuss the resilience of the current rally. The Fed's aggressive monetary policy was the primary factor in the precipitous drop in the price of bitcoin. The Federal Reserve has since shifted its position on monetary policy, going from one that was very hawkish to one that is less aggressive. For instance, it is a near certainty that the Federal Reserve will raise interest rates by just 25 basis points nextmonth. This indicates that the Fed has altered its view despite oninflation as it comes off itspeak.