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Tuesday, March 5, 2024

Crypto Price Prediction 2021: Bitcoin (BTC) Price Increases 8% Overnight

The price of Bitcoin (BTC) recovered more than 8% on the night of March 1 after a sharp drop over the weekend. There are three reasons why the BTC rate has risen so quickly in the last 24 hours:

  • recovery of the global stock market;
  • Coinbase premium growth
  • typical weekend turnaround.

Bitcoin (BTC) Price Rises Amid Stock Market Recovery

The global stock market began to recover immediately after the opening on Monday, March 1. Equities fell sharply last week on the rising Treasury yield curve. As the bond market rallied, risky assets began to fall.

Holger Zschepitz said global risk markets have begun to recover as bond yields have declined.

“Risk assets are growing amid falling debt securities. Australian bond yields fell 25 bp over 10 years. n., Germany – 3 bp. on the eve of inflation data. The US “10-year” is stable at the level of 1.41%. After the carnage last week, weakening bond yields came as a big relief. Gold rose to $ 1,757. Bitcoin rose to $ 46.8 thousand. “

While Bitcoin is considered a safe asset, it often moves in tandem with the risky asset market.

This trend arises because Bitcoin’s market cap is still hovering around $ 1 trillion. Bitcoin’s valuation is relatively low compared to other safe haven assets like gold. Consequently, there is a higher likelihood that it will be more influenced by macro factors, at least in the short term.

Analysts at Santiment explained:

“The ratio between the price of Bitcoin and traditional stocks remains above the historical norm. As we have noted in previous studies, the $ BTC rally is usually most noticeable when this correlation turns negative, as it did in December 2020. “

Coinbase premium income

Over the past 12 hours, Coinbase’s premium has climbed to $ 100. Before the reversal, Coinbase was selling at a lower price than Binance, which put a lot of pressure on the price. The drop in the futures funding rate signaled that the market has become less overheated. The stabilization of Coinbase’s premium has been a compelling signal of an improved appetite for bitcoin, especially in the US.

For the foreseeable future, based on the uptrend of the stock market and Coinbase’s consistently high premium, the crypto market has a good chance of rebounding this week.

BTC / USD Forecasts – BTC / USD Forecasts for March 3, 2021

The BTC / USD pair (Bitcoin / US Dollar) is the most popular of all Bitcoin currency pairs due to its maximum liquidity level. Its dynamics are quite difficult to predict – bitcoin practically does not react to the publication of indicators of the US economy, but responds vividly to news, especially from the world of cryptocurrencies. Nevertheless, the classical rules of technical analysis apply to bitcoin, which allows you to make highly profitable trades with correct forecasting. In this section, you will find the most up-to-date BTC / USD forecast and trading recommendations from leading investment company analysts. Already today, trading in cryptocurrencies – such as bitcoin, ether, ripple, litecoin, etc. – becomes a good alternative to traditional means of making a profit. Forex-ratings.ru materials will help you decide on your cryptocurrency trading strategy.


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