According to the prominent trader and broker Jim Iuorio, the range between $35,000 and $45,000 points since January 5 to that Bitcoin stabilizes. This range is rather modest when compared to the currency’s history of volatility.
3 reasons why Bitcoin stabilizes
Many significant variables may have an impact on the push-and-pull effect that leads to the stabilization of Bitcoin, according to Mr. Iuorio’s recent analysis on March 17. “The combination of these things could be what’s capping Bitcoin upside,” Mr. Iuorio believes. One of these variables according to Jim Iuorio is “the US dollar’s recent strength amid geopolitical risk.”
As the United States dollar weakens and inflation raises due to global geopolitical turmoil, many individuals have turned to Bitcoin as a haven from inflation.
The Federal Reserve’s “continued plan to hike interest rates” as it scales back its bond-buying program, according to Iuorio, is the second consideration. After lowering its monthly bond purchases in December 2021, the Federal Reserve has continued to proceed with interest rate hikes. On March 16th, the dollar index dropped by more than 0.6 percent following the two-day Fed meeting.
Last but not least, there’s the “continued talk of more government regulation.” As cryptocurrencies like Bitcoin become increasingly regulated, accountable, and transparent, the public will embrace them with open arms. He also added that “On the other hand, we have China and Japan both adding stimulus in the face of an economic slowdown and several headlines about governments seizing bank assets,”
At press time, Bitcoin was trading at $40,690, which is a 4.15% increase from seven days before, when its price was $39,034, according to data from CoinMarketCap.
Iuorio said that Bitcoin followers believe that crypto’s most important feature is its ability to move and store wealth outside of the banking system. In other words, some individuals may utilize cryptocurrencies to avoid these seizures.
