What's Going to be New BTC Height?

Bitcoin prices have surged again, with BTC now trading above $20,500 after a brief dip below $17,600 a couple of weeks ago. Analysts attribute the latest surge to a number of factors, including increased institutional interest and renewed public interest following the recent release of a highly anticipated U.S. government report on digital currencies.

The selection of a new British Prime minister played some role in the positive momentum of Bitcoin and other cryptocurrencies. Rishin Sunak, when he was Chancellor of Exchequerseveral spoke openly in favour of cryptocurrencies and vowed to make Britain a Crypto hub in the near future. The other significant factor was the falling Sterling, the British Pound. As the currency depreciated, the demand for Bitcoin as a safe haven asset increased among British investors.

The total cryptocurrency market capitalization now exceeds $1 trillion, up from just $150 billion at the beginning of the year. Cryptocurrencies have experienced a roller coaster ride over the past year but the fundamentals of the market remain sound.

The strong correlation between BTC and the S&P 500 has given new investors hope that the cryptocurrency will continue to grow. The relationship between these two indexes is important to understand because it can provide insight into which direction BTC is likely to move. Most of the major economies around the world increased interest rates in order to curb the growing inflation. This move sent a positive signal to the bond market, and the yield of American ten years bonds almost doubled. The UK followed the American example in an attempt to stabilize the British pound. Despite all these positive signals from the bond markets of major economies, Bitcoin crossed the psychological threshold of $2000.

Bitcoin is surely alluring new investors, especially from the UK, who don't trust their currency as much as they used. Speculation about the next BTC peak are in full swing. Some lobbiest even claiming it is going to cross $100K mark and the new minimum will be around $40K. If we study BTC previous rise and falls we cannot ignore these speculations.