What is making BTC to pump?
Bitcoin was created to be a unit of wealth independent of government and central bank control. ￼ Bitcoin has always remained true to its original principles which are etched into the Bitcoin source code like marble.
However, since a majority of people have yet to grasp the why of Bitcoin, it turns out that the price of Bitcoin is frequently correlated to what governments and central banks do.
This shows you that the price of Bitcoin in USD or fiat currency depends on how investors and traders perceive Bitcoin. So right now, as we are on January 24, 2023, the price of Bitcoin depends on one key element: the inflation figure in America.
We have seen in the last few days that the announcement of a falling CPI for December 2022 in America has reassured the markets. Everyone now thinks that the Fed will slow down its rate hikes.
Everyone is betting on a 25 basis point rate hike on February 1, 2023 following the first FOMC meeting of the Fed in 2023. The price of Bitcoin is thus up +40% year to date on this expectation.
The key moment for the continuation will be Jerome Powell's announcement on February 1, 2023 as well as the Fed's outlook for the beginning of 2023 in terms of monetary policy. Until then, this bullish rally can continue.This post is based on this twitter thread.