In recent weeks, Bitcoin's value has been suppressed below the $30,000 mark due to headwinds such as a strong U.S. dollar index (DXY), a bounce in rates and the potential for further hikes from the Federal Reserve.
However, recent market trends may signal a turning point for the digital currency. Bitcoin hit a two-week high on Monday, soaring to $28,452 on the back of a tentative deal reached by U.S. lawmakers to suspend the federal government's $31.4 trillion debt ceiling. This indicates a correlation between Bitcoin's price movement and macroeconomic conditions, which experts believe could signal a possible comeback for the cryptocurrency.
Glassnode co-founder Yann Allemann's recent tweet speculates on the potential for a Bitcoin rally, pivoting around changes in the DXY and interest rates.
A shift in macroeconomic conditions could potentially bolster Bitcoin's momentum. It remains to be seen whether the debt ceiling deal will pass on Wednesday.
As of now, Bitcoin is trading at $27,822, according to data from CoinGecko. Although the cryptocurrency has slid slightly from its two-week high, market observers are keeping a close eye on the U.S. economic climate and DXY levels, anticipating these could fuel a significant Bitcoin rally.