Bitcoin with interim rally: Price jumps by 10 percent to over 41,000 dollars

While markets around the world are eagerly awaiting the US Federal Reserve's interest rate decision, Bitcoin has made up some ground since the weekend low. The price of the largest cryptocurrency jumped to over $41,000.

The persistently high inflation worldwide with rising prices as well as the fear of a simultaneous slowdown in economic output has ensured that the central banks are turning the screw on interest rates. 

While the ECB in the EU continues to shy away from raising interest rates, the US Federal Reserve will raise interest rates on Wednesday for the first time since the corona crisis – probably by 0.25 percentage points. At the same time, the Ukraine war continues to weigh on the markets, but is also seen by some experts as a catalyst for rising crypto prices.

Bitcoin: Positive sentiment in Asia

Against this background, the strong rise in the Bitcoin price on Wednesday morning to 41,500 dollars – after all, an increase of around ten percent compared to the low of 37,700 dollars on Sunday – is difficult to evaluate. 

It is possible, for example, that the price jump is only a small interim rally, which, according to Coindesk, could be due to a positive mood in the Asian markets. Reason: The fear that the Chinese real estate crisis will spill over into the US economy seems unfounded at first.

The decision of the EU Parliament not to ban Bitcoin and other potentially "ecologically unsustainable" crypto currencies is also likely to have had a positive effect on the crypto market. Once again, however, the correlation with the stock markets was also evident. 

Both the German stock index Dax and the US index S&P 500 continued to recover on Tuesday – and are also initially in the plus on Wednesday. It is possible that a US interest rate decision that is sharper than expected or a gloomy outlook from Fed Chairman Jerome Powell will tip the mood.

Bitcoin rate at $50,000 by the end of March?

Meanwhile, some experts such as Nigel Green, CEO of the Devere Group, see the current situation in Russia and Ukraine as a possible catalyst for a further positive development of the Bitcoin price. The Ukraine war and the sanctions in Russia showed potential investors how important crypto currencies are in times of crisis, crypto bull Mike Novogratz also found. 

Accordingly, the price of Bitcoin and Co climbed in the days after the Russian invasion of Ukraine. According to Green, a Bitcoin price of $ 50,000 is possible by the end of March. On Wednesday morning, the Bitcoin price moves slightly above the $ 40,000 mark.