Bitcoin soared 11.31% from 24 hours ago to $24,661 on CoinMarketCap, a global coin market broadcasting site.
Bitcoin soared to $24,769 on the same day, attempting to surpass $ 25,000. If Bitcoin surpasses $25,000, it will be the first time since August last year.
The sudden surge in Bitcoin is attributed to the massive liquidation of the short selling position and the U.S. stock market rally despite a surge in retail sales.
First of all, CoinDesk, a cryptocurrency media outlet, reported that Bitcoin is soaring because investors have liquidated more than USD 60 million in selling positions.
Bitcoin is suddenly soaring as investors, who took short positions believing that Bitcoin would fall, eventually liquidated it as it remained steady for a long time without falling.
CoinDesk also analyzed that the U.S. stock market’s simultaneous rise despite a significant increase in retail sales is also contributing to the cryptocurrency rally.
On the 15th (local time), Dow rose 0.11%, S&P 500 rose 0.28%, and Nasdaq rose 0.92%, respectively.
The U.S. Department of Commerce said retail sales rose 3% to $697 billion in January after falling for two consecutive months. This is far above Bloomberg’s estimate of 1.9%.
It is also the largest increase since March 2021. At that time, it was time for stimulus measures to pour out due to the COVID-19 pandemic. Excluding this period, it is the largest increase in 20 years.
As a result, the U.S. stock market closed higher on the same day despite the possibility that the Fed would raise additional interest rates.
The U.S. stock market fell all at once right after the announcement of retail sales. In the afternoon, he attempted to reverse the market, but at the end of the market, he reversed the upward trend and eventually succeeded in closing the upward trend.
This is attributed to rising expectations that the U.S. economy will succeed in a soft landing. Expectations are rising that the Fed’s rate hike could calm inflation without plunging the U.S. economy into a recession.
U.S. investors expect the U.S. economy to be a “goldilocks” that is neither too hot nor too cold.
As the U.S. stock market closed higher, the Asian stock market, which was opened after the U.S. stock market, is also rallying in unison, with Korea’s KOSPI soaring nearly 2%.
Due to such favorable factors, Bitcoin seems to be rallying for the first time in a long time and crossing the $25,000 mark.
