Cryptocurrency markets have entered another critical moment. Bitcoin jumped to $57,400 on Wednesday. Some investors decided to monetize the recent surge but the price is going up again and the BTC market cap exceeded $1 trillion.
It’s still less than the US stimulus package worth $1.9 trillion, which is getting more real with every day going further through the legislative process. On Wednesday it was approved by Congress. The US economy needs incentives not to collapse under the pressure from COVID lockdowns. However, spendings may trigger inflation on USD and other fiat currencies as more and more individuals and institutions are worried about the excessive increase in monetary supply.
BTCUSD is up over 25% in March and intriguing chart patterns are being formed.
If Bitcoin breaks through the $58,387.5 level from February 21 you may expect a spike in price, as many investors afraid of missing out on the wave will decide to enter the growing market.
However, if this trial fails, a downturn scenario is also possible. If any big player decides to sell their BTC, more investors may follow.
Ethereum has already retraced from the March top from Tuesday and is now losing value for the second day in the row, trading around $1780 at the moment.
Litecoin shows similar trends to ETHUSD and failed to approach the February highs. Probably, these altcoins will respond to any stronger price move on BTCUSD. Stay tuned!
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