• The Federal Reserve is set to implement a 25 basis point rate hike due to strong economic data.
• Whale outflow from Huobi has seen Bitcoin jump over $31K, up 3% on the day.
• This news comes concurrent with speculation that the bear market may be nearing an end and leveraged bets at risk of liquidation.
Federal Reserve Set to Increase Rates
The Federal Reserve is set to raise interest rates by 25 basis points following strong economic data. This move could signal a shift in monetary policy as the US economy recovers from the impacts of the pandemic.
Bitcoin Surges Above $31K
A whale outflow from Huobi was seen as 7,500 Bitcoin left the exchange, driving Bitcoin prices over $31,000 for the first time in weeks. Data from Glassnode showed that Huobi now has less than 20,000 Bitcoin on its platform, and analyst Willy Woo reported that Huobi collateral had been continuingly drained.
Bear Market Nearing an End?
The surge in prices has led many analysts to speculate whether this marks an end to the bear market or not. Additionally, there are concerns about large clusters of leveraged Bitcoin bets at risk of liquidation due to high volatility in prices.
Data Analysis
Netflow data shows that almost 7,500 bitcoin left Huobi exchange which caused BTC price rising above $31k with 3% increase on the day. Balance on Exchange data also confirms this trend as it shows that only 20 k bitcoin is left on exchange currently after outflow of 7000 BTC .
Conclusion
Cryptocurrency markets have been highly volatile so far this year but it appears that investors are still confident enough to take risks and invest their money despite warnings about potential risks associated with such investments like liquidity and security issues . The Federal Reserve’s decision to raise interest rates has also had a positive effect on crypto markets as investors look for alternative investments during times of uncertainty . Finally , while no one knows what will happen next , analysts are optimistic that we may finally see an end to this bear market soon .
