Bitcoin Price Rises for Second Day on Hopes for Soft Landing

Bitcoin (BTC) is up 2.8% in the past 24 hours, continuing its recovery from a five-week low around $38,700 on Monday.

As of press time, the largest cryptocurrency was changing hands at $41,373, still well off the high around $48,000 a few weeks ago.

“The macro landscape is looking positive in my opinion,” wrote Marcus Sotiriou, analyst at the U.K.-based digital asset broker GlobalBlock in a newsletter. “I am not concerned whether there is a 50-basis point rate hike or not. What matters is how strong the consumer is. The University of Michigan consumer sentiment index is flat, showing that we do not have unanchored inflation expectations, meaning that people do not think inflation is going to run away. This was not the case in the 1970s, which led to a recession.”
Sotiriou said he thinks the economy will have a soft landing despite many analysts forecasting a recession. He is bullish on bitcoin and equities even though there might be a 50 basis point rate hike.
Ether (ETH) rose 6.8% in the past 24 hours, trading just above $3,000. U.S. stocks were higher on Tuesday. The S&P 500 is up 1.3% today and the Nasdaq is up 1.7%.
“It appears that there’s strong selling pressure in the $BTC perpetual swaps market,” IntoTheBlock Insight said in a Telegram message. There is a negative funding rate across all major exchanges and a rising open interest, which means that shorts are being opened.

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Angelique Chen

Angelique is a market contributor at CoinDesk.

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