Why The Huge Bitcoin And Crypto Price Pump Could Be Just Getting Started
![](https://cryptonewswire.org/wp-content/uploads/https://imageio.forbes.com/specials-images/imageserve/5d66234ffead280008925a49/0x0.jpg?format=jpg&width=1200)
Bitcoin
BTC
The bitcoin price has come within touching distance of $20,000 per bitcoin for the first time since FTX’s shock collapse, up almost 20% since this time last week (though these smaller cryptocurrencies are leaving it in the dust).
Now, as the closely-watched Bitcoin & Crypto Fear and Greed Index climbs to its “greediest” point in four months, traders are asking how far this bitcoin price rally will go and whether the downturn that’s seen $2 trillion wiped from the combined crypto market could finally be over.
It’s in a brutal bear market that you need up-to-date information the most! Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market
The bitcoin price rally has pushed the crypto market back to around $1 trillion.
“The short-term outlook for bitcoin seems bright since the recent breakout from $18,000 will likely call some technical traders back into the market,” Yuya Hasegawa, crypto market analyst at Tokyo-based Bitbank, said in emailed comments and pointing to rising expectations that cooling inflation will mean the Federal Reserve slows the pace of its planned interest rate hikes.
“It was also a bit of surprise and relief that the Fed chair Jerome Powell refrained from mentioning specifics of the future monetary policy in his speech in Sweden this week and did not take a jab at the market’s somewhat premature hope for slower rate hikes,” Hasegawa added, but warned Fed officials could slap the market back down—”a recurring pattern since towards the end of last year.”
The bitcoin price suffered massive losses through 2022, exacerbated by the collapse of various crypto companies and culminating in the implosion of major crypto exchange FTX.
However, over the last two years, there has been bitcoin adoption on Wall Street, with some of the largest financial giants beginning the slow process of entering bitcoin and crypto markets.
“It’s often forgotten that institutional investors have significant lead time when taking bitcoin positions,” Tycho Onnasch, founder of institutional bitcoin lending protocol Zest.
“Many institutional investors who got interested in taking a bitcoin position during the frenzy of 2021 have now finally completed their internal processes that enable them to start trading bitcoin. Institutions can’t just fire up Coinbase and make 7-figure market buys of bitcoin whenever bullish news breaks. They have lengthy processes of setting up custody, finding brokers, setting up execution management systems, and more that make their moves possible.”
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
The bitcoin price has surged into the new year but remains far from the all-time high of almost … [+]
Meanwhile, others expect the flow of institutional investors into bitcoin will continue this year.
“We will see continued adoption of bitcoin and crypto in traditional banking and finance,” Alex Adelman, the chief executive of bitcoin rewards app Lolli, said in emailed comments.
“Industry leaders that launched crypto services in 2022 like BlackRock, Fidelity, and more set a new crypto-forward precedent for Wall Street which will spur competition among traditional institutions to launch a growing suite of crypto products and services.”