Soaring Bitcoin returns to $94,000 - Does this mark a reversal in its pattern?
In the world of cryptocurrency, there's been a flurry of activity in recent times. Bitcoin, the leading digital asset, has seen a surge in price following the appointment of Paul Atkins as the new SEC Chair. Atkins, a lawyer and entrepreneur with a background in advocating for loose regulation, has been a welcome addition to the industry, particularly as he serves as co-chair of the industry lobbying group "Chamber of Digital Commerce."
The price of Bitcoin dipped below $75,000 in the first third of April, 2022, forming a double bottom with high trading volume. This double bottom, a classic signal for a trend reversal, seems to have been a catalyst for the current surge. On April 20th, 2022, Bitcoin started a climb around $84,000 and reached $94,000 on the same day, nearing the $100,000 mark.
Meanwhile, Ethereum, the second-largest cryptocurrency by market cap, is also gaining momentum. In the past 24 hours, Ethereum has experienced a price increase of nearly 14 percent. However, when compared to its late-March levels on the 1-month chart, the recovery in Ethereum's price looks less impressive.
The strength of the euro, currently at $1.14, its highest value since the end of 2021, is likely due to threats to the dollar's status as the world's reserve currency. The European Central Bank (ECB) had not yet lowered interest rates by September 2025 but was expected to consider a rate cut by the end of October 2025 due to weak economic outlook and inflation close to the target of 2%. The ECB cut its key interest rate from 2.50% to 2.25% on April 17th, 2022.
Trump, the former US President, has expressed his desire to replace Jerome Powell, the current Federal Reserve Chair, with someone more agreeable. However, Trump's charter grants the Federal Reserve independence, making it impossible for him to dismiss Powell directly. Trump is pressuring the Fed to cut rates, but Powell is holding out for now.
The period from 2008 to 2022 was characterized by steadily declining key interest rates. This trend, however, may be set to change as central banks, under the pressure of rising inflation, significantly raised interest rates for the first time since 2008. In 2022, under the pressure of Russia's invasion of Ukraine, inflation rose sharply, prompting central banks to take action.
Atkins plans to develop a clean regulatory foundation for digital assets and ensure the U.S. becomes the best and safest location for them. His appointment and plans could have a significant impact on the cryptocurrency market in the coming months.
In conclusion, the cryptocurrency market is showing signs of recovery, with Bitcoin and Ethereum both experiencing surges in price. The strength of the euro and the future of interest rates remain topics of interest, as central banks navigate the challenges of inflation and economic recovery.
