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Bitcoin has broken the 20k barrier,but why?
The latest CPI report from the United States shows that inflation has begun to decrease, only at 0.1%, in the European zone they have also begun to decrease in the short term, could this be the reason? I don't think so, let's keep looking at other data.
There are strong rumors indicating that the United States Federal Reserve could decide to lower its interest rates on January 31.
On the other hand we have the loss of value of the dollar, historically, when this occurs, interest in risky assets such as Bitcoin increases. You can inquire about the U.S. Dollar Index if you want to find out how it works and what data it's based on.
The 20k represents a psychological number because it was the previous ATH (All Time High) of the bullish momentum of 2017.
We also have to take into account other factors that may influence, such as the trial of Sam Bankman-Fried accused of 8 crimes, the escape of Do Kwon who is being wanted by Interpol for the Luna/Terra case and a couple more people/companies with pending accounts with the courts.
OPINION:
I am not an expert, but based on the data we have, I would say that we are facing a bull trap, but we never know what can happen tomorrow in the crypto world.
I think that there has been an increase in value because certain aspects such as those mentioned have coincided, but it will go down again, yes, with a slightly higher resistance than the price we were used to, although everything can change depending on what the federal reserve decides. It's possible to be close to the end of the bear market with how close the next halving is, remember, I am not an expert and I only give my opinion, do your own study before investing,
I would like to read what you think in the comments. 👀
All screenshots have been taken from the United States government website or public markets