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3 reasons why the Bitcoin price rallied at the weekend

3 reasons why the Bitcoin price rallied at the weekend


Bitcoin and cryptocurrency prices are back in the green this Monday after BTC’s 5 percent gain. BTC markets have been strengthened – and there could be some factors involved.

Weekend rebound on Bitcoin price

After falling from resistance last week, Bitcoin price rebounded over the weekend and has risen above $ 8,600 this morning in Asian trading. The past 24 hours have been bullish – with steady gains that have increased BTC prices by almost 5% since the beginning of the weekend.

Analysts like Josh Rager have become the premise expressed that anything more than $ 8,000 holds, the more bullish the longer it stays there.

There could be a number of factors in the game that have brought BTC back to resistance.

Corona virus, falling yuan

With the spread of the Chinese corona virus, travel restrictions come into force and the death toll increases. Concerns about insufficient efforts by the Chinese authorities are increasing as more cases occur worldwide.

As a result, the yuan fell this morning, according to Reuters. The offshore yuan fell nearly 0.5% to just below $ 7 a dollar, the weakest since January 8.

The state announced it would extend the New Year celebrations to February 2 to prevent contamination from spreading further.

Falling fiat strength is usually a bullish signal for Bitcoin, and the Chinese have had a huge impact on Bitcoin markets and sentiment.

Gold rush, safe haven

The gold price has recovered similarly and is pushing further towards $ 1,600 / oz.

Reports According to analysts keep the interest rate decision by the Federal Reserve on Wednesday closely. Conversely, the S&P 500 had its worst week since mid-August.

It is not the first time that Bitcoin prices have been in step with gold in the short term, which strengthens the safe haven thesis for BTC.

Did BTC jump due to the “Italian effect”?

Italy has so far not played a major role in the world of cryptography, but the country is again in a political crisis. Late on Sunday, the Italians waited for the election results from the relatively rich region of Emilia-Romagna near Milan, which could have given power to Matteo Salvini’s nationalist northern league.

Trustnodes now makes the connection that a similarly timed Bitcoin rally may have been initiated as a result of a potential shift in power that could bring anti-euro leaders to power.

The first results don’t look favorable for Italy’s extreme right troublemaker Salvini , but the full count won’t be available until later in the day.

It remains to be seen whether this was directly related to the Bitcoin rally – however, further concerns in the Far East are likely to have had a greater impact.

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