Key Points
- Bitcoin (BTC) is approaching its all-time highs as the market consolidates higher.
- Macroeconomic triggers could potentially inject volatility into risk assets.
Bitcoin is making a strong comeback as it approaches the last week of March, with its price nearing all-time highs. The market is consolidating higher, indicating a possible return to price discovery for the cryptocurrency.
Bitcoin’s Renewed Energy
Last week’s bleak mood, marked by significant losses, is being replaced by a more optimistic outlook. The retracement from the all-time high of nearly $74,000 passed 17%, causing some market jitters. However, the landscape appears different this week.
Investor anticipation of a fresh attack on the highs is climbing. This, coupled with an incoming mining difficulty increase, suggests classic bullish signals.
Macroeconomic Triggers
Beyond Bitcoin, a set of macroeconomic triggers could potentially inject some added volatility into risk assets. This includes the Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation measure.
Bitcoin’s weekend performance was a success story for bulls, with a slow grind higher culminating in a weekly close of just under $67,200. This effectively offset most of the recent losses, which saw Bitcoin reach local lows of less than $61,000 on March 20.
Despite recent BTC price volatility, Bitcoin network fundamentals are preparing for upward continuation. The latest estimates see mining difficulty holding at this week’s automated readjustment, keeping the difficulty at or near all-time highs.
Miners are gearing up for the upcoming block subsidy halving on April 20, which will cut Bitcoin’s emission per newly-mined block by 50% to 3.125 BTC.
Despite the “greedy” sentiment in the crypto market, mainstream interest appears to be waning. However, the power of the Bitcoin bull market is not to be underestimated, with many still anticipating steep rises in the cryptocurrency’s value.
