Bitcoin price recorded its highest weekly close in 2022: What’s next?
Bitcoin price has been steadying around $47,000 after minor fluctuations last week. While Russia is still considering accepting cryptocurrencies for oil and gas, the Ukrainian government recently released an NFT Collection named ‘Museum of War’.
Here are some of last week’s major crypto events:
- Bitcoin has reached its highest weekly close year-to-date as well as weekly gains for two consecutive weeks. This recovery was likely due to two main factors: An increase in demand for both spot markets and crypto-based funds.
- The Secretary of Economic Development of Brazil, Chicão Bulhões announced that Rio de Janerio will officially accept Bitcoin for real estate payments starting from 2023. In addition, Binance CEO Changpeng Zhao stated that he will open an office in Rio making it the first Brazilian country to make BTC payments mainstream.
- On March 14, the Ukrainian government launched their first-ever NFT collection named “Museum of War.” The main aim is to raise funds for its defense against Russia. The sales are expected to be raised around $3 million, from selling 5,000 to 7,000 NFTs for $450 a piece.
- Indian parliament increased its regulation on cryptocurrencies by enforcing a 30% tax on crypto trading profits and a 1% tax on all kinds of crypto transactions. The regulations will be effective after April 1 and several parliament members are concerned that it will decrease the market demand as it makes it more expensive to trade.
- The White House signed an executive order for examining the ‘implications of digital assets’ for several federal agencies. This specific measurement will focus on six main points: consumer protection, financial stability, illicit activity, US competitiveness, financial inclusion, and responsible innovation.
Top 10 Cryptocurrencies by Market Capitalization:
What were some factors behind the Bitcoin price climb?
Bitcoin price has been experiencing some price fluctuations in the past few weeks. Over the weekend, BTC surged to $45,000 and closed the week at $47,000, marking the highest weekly close year-to-date.
Bitcoin price has been moving sideways around the $40,000 psychological level for an extended period of time.
The recent $7,000 surge extended on the back of BTC’s upswing two major events:
- The US Federal Reserve announced that it would increase interest rates by 0.25%, marking the central bank’s first such rate adjustment since 2018.
- US President Joe Biden’s initiative to sign an executive on increasing the efficiency of using crypto in different areas demand BTC has increased.
Recent data by CoinShares revealed that institutions have been heavily investing in cryptocurrencies, as inflows in digital asset funds are at the highest levels in three months.
Bitcoin remained in the spotlight, with over 50% of last week’s institutional capital going into products based on BTC. Total inflows reached $98 million.
Bitcoin was a popular choice among European investors with 76% of inflows coming from the region, after the news that the bill banning proof-of-work (PoW) mining did not pass.
Investors should also pay attention to Bitcoin’s break above its 50-day Simple Moving Average (SMA). According to to historical trends as suggested by Bespoke Investment Group this could signal further price surges.
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