After heightened fears of falling below $26k last week, Bitcoin managed to pull off a bullish trend over the weekend. According to the latest crypto market data, Bitcoin price exchanged around $28k during the early Asian trading session on Monday, up approximately 2.5 percent in the past 24 hours. Similarly, the altcoin market managed to rally behind Bitcoin over the weekend led by Ethereum. As a result, the total crypto market capitalization jumped approximately 2.2 percent to about $1.21 trillion on Monday.
U.S Debt Crisis
The sudden reversal in the crypto market over the weekend is largely attributed to the announcement that the United States government will raise its national debt to avoid defaulting for the first time. Notably, the rise in national debt only means higher inflation as the Fed will be compelled to print more money to accommodate the rising national debt.
Nevertheless, President Joe Biden and House Speaker Kevin McCarthy reached a final agreement that the government will cut spending along the way.
“It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone,” Biden noted.
Bitcoin Price Analysis
According to a popular crypto influencer Lark Davis, Bitcoin price is poised for higher gains in the coming days. In his latest analysis, Davis noted that Bitcoin price has reclaimed the 50-day EMA after 20 days of trading below it.
Also Read: Is the Bitcoin Bull Run Just One Step Away?
As a result, the analyst expects Bitcoin to replay a similar move to the one in early March.
“The last time we had a big fat green candle pumping up over the 50-day EMA the price of Bitcoin rallied by 40% in the following weeks,” Davis noted.