Bitcoin’s high for yesterday was $25,250. As you can see on the 15-minute chart below, BTC spent quite a short time at this level, after which it noticeably corrected.

15-minute chart of Bitcoin exchange rate

And this is rather unexpected, as conditions in the cryptocurrency market are far from the best right now. Over the past week, US regulators have managed to ban cryptocurrency staking on cryptocurrency exchange Kraken for Americans and halt the issuance of BUSD stabelcoin. On top of that, the inflation data released this week was worse than expected.

Also the popularity of the query “Bitcoin” on Google around the world is at its lowest point in a year. That is, newcomers are not particularly interested in the topic.

Popularity of the Bitcoin query on Google globally over the past year

However, even that hasn’t stopped the digital asset niche from showing serious growth in the middle of a bearish trend.

Why is Bitcoin growing?

The cryptocommunity is actively discussing what’s happening in trading, with several theories receiving the most feedback. The first one is that BTC’s rise is due to an unknown fund that has been actively investing in the market since February 10.

Bitcoin price rise on a 1-hour chart scale

According to the Lookonchain platform, at least $1.6 billion has been invested in the crypto over the past few days, belonging to institutional investors – that is, large professional investors. Of that amount, most of the capital has come in the form of stabelcoins, of which USD Coin – issued by Circle – has stood out in volume.

Here is the relevant data to support this theory. Here is the withdrawal address of the stablcoins from Circle, their signature and also the amounts.

Circle withdrawal statistics

The USDC owner first withdrew the tokens from Circle's vault and then sent them to several cryptocurrency exchanges. Stablecoins were then used to purchase digital assets.

Analysts noted three wallets whose funds were traced from Circle to cryptocurrency exchanges. The first, an address starting with “0x308F”, withdrew 155 million USDCs and transferred them to exchanges on 10 February. The second address, “0xad6e”, withdrew 397 million USDC from Circle. Finally, the third wallet, starting with “0x3356”, withdrew 953 million USDC.

Here is an illustration that shows the direction in which the digital assets are moving. They end up on the exchanges needed to conduct transactions with other cryptocurrencies and tokens.

Movement of funds across wallets

According to CryptoPotato’s sources, one of the reasons for investing in such volumes could be news about the US macroeconomic environment. Still, earlier this week the consumer price index was published, which gives a general idea of the rate of inflation in the country. Although it was slightly above the forecasted value, the situation remains under control, so market players could take it as a bullish signal.

Consumer Price Index (CPI) trends in USA


Separately, it should be noted that the cryptocurrency market situation does not always develop logically. The main example of such in the last year was the events at the end of July, when it became known about the decline of the US GDP by 0.9 percent in the second quarter. And since the figure fell for the second quarter in a row, this characterises a recession, i.e. a bad situation for the economy.

Despite this, digital assets have taken on an increase in value, which means they have been actively bought up. On that day, Bitcoin was up 8 percent for the day, which is quite serious for a cryptocurrency with the largest market capitalization.


After a rapid rise above $25,000, Bitcoin’s price went into a correction, which is quite expected in this situation. However, well-known investor and Galaxy Digital founder Mike Novogratz urges investors not to relax. According to him, BTC may well rise to $30,000 as early as this quarter, that is, by the end of March.

Galaxy Digital CEO Mike Novogratz

Here’s the statement he made during his speech at the Bank of America conference.

When I look at the price trends, when I look at the excitement of the customers calling me and the growing fear of lost profits, I would not be surprised if by the end of the quarter we hit $30,000.


Traditionally, we should note that an expert's point of view does not guarantee a certain development, so Michael Novogratz's current expectations could easily fail. The billionaire has already had a similar experience: he previously tattooed the name of the cryptocurrency Terra LUNA, which eventually suffered a collapse. On top of that, it became known tonight of a lawsuit filed by the US Securities and Exchange Commission against Terra founder Do Kwon.


A tattoo dedicated to the Terra LUNA token on Novogratz’s forearm

To reach Novogratz’s prediction target, Bitcoin’s price would need to rise about 22 percent more from current levels. Much more BTC will have to rise to reach another global investor goal – the $500,000 level. He has repeatedly emphasized this prediction, though he said relatively recently that Bitcoin is unlikely to rise to the aforementioned level in the next five years. The policy of the US Federal Reserve is to blame.

The latter may well play a decisive role in the coming global bull run. Traditionally, markets rise when the US Federal Reserve lowers its lending rate or at least keeps it at the same level. According to many analysts’ forecasts, the Fed plans to raise the rate to 5.25 per cent this year, which means it will raise it a couple more times. Consequently, the prospect for growth in the markets does indeed remain.


We believe that the reasons for the rise in the cryptocurrency market can be very different - starting with the banal overselling of assets given the events of recent months. Either way, it is important to remember that coins and tokens may have gone through their next bear market, so there is nothing strange about their value jumps. They are one of the features of this cycle.