The main driving factors behind the Bitcoin price rebound to over $42,000.

Ritu77

The leading inflation indicator, the Personal Consumption Expenditures (PCE) Price Index, was released on January 26, reportedly falling below expectations. This suggests that inflation in the United States is cooling down, and experts predict that the Federal Reserve may reduce its aggressive monetary policy.

It is well known that the hawkish stance of the Federal Reserve has a negative impact on the price of Bitcoin and the broader cryptocurrency market. Therefore, this recent development is positive and could lead investors to double down on flagship cryptocurrencies, triggering a price surge.

Meanwhile, recent data from the U.S. Department of the Treasury shows that the country's debt has reached a historic high of $34.1 trillion. Although this has raised concerns about the imminent collapse of the U.S. dollar, it also positions Bitcoin and other cryptocurrencies as a hedge against potential devaluation of national currencies.

Interestingly, various financial analysts, including renowned economist Peter Schiff, continue to predict the imminent collapse of the U.S. dollar. Given this scenario, financial writer Robert Kiyosaki urges everyone to invest in Bitcoin to avoid becoming poorer due to government actions.

Another factor believed to contribute to Bitcoin's recent surge is the expiration of monthly BTC options contracts on Deribit. Considering that CryptoQuant CEO Ki Young Ju has already pointed out that the derivatives market is a key factor behind Bitcoin's recent decline, the expiration outcome likely played a crucial role in the upward movement of Bitcoin.

Iti9

Since it's said that the bull market has arrived, it certainly won't end immediately.

Jafar224

It's essential to take a look at the prices, of course.

Ritu13

Is the price of Bitcoin currently on the rise?

Kabir903

It's already approaching over forty thousand dollars.