The price of bitcoin is now over 64,000 US dollars. Not so long ago, the price of the cryptocurrency was less than 60,000 USD. Why such a sharp rise?

The bitcoin rate is rising again

Let's take a look at the chart. At the time of writing these words, bitcoin is worth about $64,250 USD, which means an increase of 3% in 7 days and 1.3% since yesterday.

Ether is doing even better. Despite traders going to zero for the week (weekly up/down is 0%), it is already up almost 3% since yesterday. For 1 ETH, it is paying $3,176 USD today.

The mood is also good again. Greed has returned to the BTC market. Investor indifference has been replaced by indifference. Bitcoin's fear and greed index is currently at 71.

Ethereum's fear and greed index is at 60, which also means the market is greedy.

Where did this growth come from?

The right question to ask from the headline is: why is bitcoin rising when many are once again predicting a fall to hell?

The answer is trivial, but still not understood by many less experienced investors. A bull market doesn't mean that stocks go up all the time. Ups are followed by downs, natural corrections. And something like this is already behind us. The bitcoin price reached a localized low. It happened around the time I wrote about it in the May 1 article. The market then formed a double bottom and eventually a breakout, as you can see in the chart below.

Of course, the bitcoin situation was improved by macroeconomic data from the US. We learned that the US market has cooled down, which gives us hope that the Fed won't wait as long to cut interest rates as we might have thought before the news came out. The other thing is that the market is still betting that rates will not be cut in June.