The crypto market looks to have regained its lost momentum as capital movement makes a positive U-turn. Bitcoin and major altcoins are now back in the green with various factors driving them up.
Crypto Market Rebounds As Bitcoin Reclaims $71k
Crypto traders are now seeing some relief after the crash that ravaged the market last week. Bitcoin price recorded some gains, reclaiming its price above $71,000 after previously falling to as low as $60,000.
Source: TradingView; BTC price daily chartMajor altcoins like Ethereum and XRP have also seen some gains in price, following Bitcoin’s trend. A couple of factors have been shaping up sentiment. For instance, today, President Trump will officially announce Kevin Warsh to succeed Jerome Powell as the Fed chair. This comes as he looks to install an official who would support his push for rapid Fed rate cuts.
Warsh also shared plenty of ideas that could be particularly bullish for the crypto market. Already, the odds for another Fed rate cut have begun to rise, according to CMEGroup.
Another reason for the price upticks is speculation that the crypto bill could finally make some progress this week. This comes as the White House is set to host crypto firms and banks to resolve the issues on stablecoins on Tuesday. There has also been speculation around the market that the President aims to sign the bill by April at the latest.
Also, it was reported that the U.S Strategic Reserve bought some Bitcoin as soon as it hit the $60,000 mark. Hedge Fund Manager Jim Cramershared this in a recent interview with CNBC.
These factors have boosted the crypto market overall, with its cap gaining nearly 2% in the past 24 hours.
Government Shutdown Fears Return
Another U.S government shutdown could happen in the coming days amid unresolved funding issues. This comes just about a week after the previous closure ended. Polymarket has also assigned a 77% chance that the government would close by February 14.
Source: PolymarketThe new development could reverse the momentum the crypto market is currently gaining as it looks to recover to previous highs. According to Politico, Senator John Fetterman said yesterday that he expects another partial shutdown.
This is particularly due to the DHS funding set to expire on Friday after lawmakers said they would only extend the department’s funding for two weeks.
Source: https://coingape.com/why-is-crypto-market-up-today-feb-9/
