On Monday, the Bitcoin price improved drastically following confirmation by Block Inc. co-founder Jack Dorsey that he firmly believes in the cryptocurrency. His remarks on Twitter came amid renewed optimism in investors, with BTC having spent several days in price consolidation.
In response to a post by Jamie Selects, who shared that they had convinced all Square sellers at a local market to adopt Bitcoin payments, Jack Dorsey replied that “Bitcoin is money” and reaffirmed his belief in the usefulness of the digital asset. He later posted in a follow-up, responding to this, that Bitcoin is not crypto.
His words rapidly went viral on social media and were seen as in line with his previous efforts to promote Bitcoin as a decentralized and censorship-resistant money form. Market participants saw his comments as a statement of the long-term prospects of Bitcoin instead of a speculative asset.
Bitcoin increased by 2.82% in the last 24 hours, to reach $110,222, after a short-lived decline to approximately $103,598 on October 17, per CoinMarketCap. The daily trading volume of the cryptocurrency reached $58 billion, and its market capitalization increased to $2.19 trillion, underscoring its dominance in the cryptocurrency market.
Bitcoin is 12% below its all-time high of $126,198 reached on October 7, although it has rebounded a bit in the short term. Analysts reported that the recent reversal enabled the long-term investors to move into the market again at more favorable prices. According to data, renewed buying interest emerged after the correction, which is being supported by significant demand at lower levels.
The market statistics were showing that Bitcoin exchange-traded fund (ETF) flows were net positive in October and had occasional outflows. Analysts opined that the stabilization of macroeconomic conditions would trigger renewed momentum.
Technical indicators suggest that the market is facing resistance within the range of $112,000 to $115,000 and is likely to break out in the coming days, potentially reaching $120,000 if momentum continues.
The next focus is on future macroeconomic events that may affect the trend in digital assets. The delayed September US Consumer Price Index (CPI) report that is expected to be released on Friday is likely to inform investor sentiment ahead of the Federal Reserve policy meeting that will take place between October 28 - October 29.
Analysts believe that the inflation data, along with trends in Treasury yields and gold prices, will be used to gauge short-term risk appetite in global markets.
Also Read: Bitcoin News Today: BTC Holds Near $108K as Market Eyes Potential Rebound From Lows