Bitcoin: Here’s What BTC Needs to Push Towards $30k

Paigambar Mohan Raj
Source: Finshots

2022 took a toll on the crypto industry. Bitcoin (BTC) lost over 60% of its value in what is being called the worst year for the industry. However, known crypto analyst Michaël van de Poppe says two catalysts could push BTC towards the $30k level.

Poppe says that the chances of a relief rally are increasing. In his opinion, a significant drop in inflation and a pause in interest rate hikes can push Bitcoin into the greens.

The U.S. Federal Reserve increased interest rates several times in 2022 to curb inflation. In January 2022, interest rates ranged between 0% and 0.25%; by December, they were between 4.25% and 4.50%. Higher interest rates mean the cost of capital is high, and the likelihood of investments in risky assets, such as Bitcoin, is low. A cooler monetary policy will change investor sentiment and make borrowing cheaper. Hence, it will lead to more investments in crypto. Current CPI (Consumer Price Index) numbers are higher than the FED’s target of 2%.

When will Bitcoin rally ahead?

As pointed out by Poppe, the next bull run will likely happen when inflation has been dealt with, and interest rate cools off. According to experts, inflation should come within the FED’s target by spring 2024. However, spring 2024 is still a year away from now.

2022 has proven to be a nightmare for the global financial sector. Like Bitcoin (BTC), Tesla stocks also took a beating. Shares of the automotive giant fell by a whopping 58% till mid-December. Tesla CEO Elon Musk experienced the most significant drop in personal wealth due to the falling price of Tesla shares. The billionaire was recently included in the Guinness Book of World Records for the feat.

At press time, Bitcoin (BTC) was trading at $17,438.98, up by 1% in the last 24 hours.