Bitcoin Passes $30K: Highest Price Since June 2022 – What’s Driving the Rally?

• Bitcoin has broken $30,000 for the first time since June 2022
• Volatility and profits are at their highest point since before the house of cards came down
• Low liquidity and positive interest rate expectations have kicked Bitcoin up past $30K

Bitcoin Breaks $30k: Why is it Happening Now?

Bitcoin price recently breached the $30,000 mark for the first time since June 2022. Not only is the price at its highest point in ten months, but also volatility and profits have ramped up to the highest points since before last summer. But why? And will it continue?


The headline news is that Bitcoin broke $30,000 again after a 10-month hiatus. To refresh our memories, this happened just before the Celsius crash when crypto lender announced on June 12th 2022 that it was suspending withdrawals due to getting caught up in the LUNA contagion, causing billions of customer assets to be locked and sending Bitcoin’s price below $20,000 in days afterwards.

Interest Rate Forecasts

The key factor behind this resurgence appears to be interest rate forecasts flipping from negative to positive, providing an impetus as market bets tight monetary policy is coming to an end. This could explain why 45% of stablecoins have fled exchanges in last four months with market depth not recovering from Alameda bankruptcy in November.

Low Liquidity

Low liquidity has also been a contributing factor as less funds are needed to move Bitcoin up (and down). This combined with positive interest rate expectations pushed BTC above $30K this week.

Week Ahead

Next week brings data on inflation, Fed minutes and earnings which could cause Bitcoin prices to move violently depending on how it shakes out. Investors should keep a watchful eye on these developments over the coming days.