Reasons why Bitcoin increased to $58, 000

Bitcoin has  in recent times shown to be bullish and there certain reasons that may be attested to have increased bitcoin to $58, 000/

The first reason is $1.9 trillion US dollar stimulus which was passed by the senate and of which 49 votes were against it while 50 voted were in favour of it. The president of the United States, Biden has recently assented to the $1.9 trillion coronavirus relief bill on March 11 and which is the entry into force of the bill officially to provide monetary stimulus relief to the United States Economy.

Secondly , the Consumer price index increased from 262.231 to 263.161 in February and which is an increase of about 0.4 % from last month though it is in tandem with expectations of economist.   The aforementioned was released by the U.S Department of Labor. However, there was lowering of the market’s expectation of the FED’s interest rate hike, because the inflation rate failed to exceed expectation.

The third reason is that the selling pressure on the US technology has reduced and the Nasdaq composite index has rebounded, increasing from approximately 12, 609 to 13, 398 , which have been attributed to the low increase in consumer price in the United States in February.

Finally, the final reason, is that are still moderation in the inflation rate and which has reduced the current inflation concerns by the investors. Also, the bond yield  for ten years reduced to less than 1.54% in the last three days and is currently at 1.544%/ to a bigger extent, the sharp rapid rise will not be reproduced by the by the yield curve as it happened before and which panicked the investors in cryptocurrency.



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