The price of Bitcoin has risen by more than 20% in seven days. On Monday morning, the price rose to $20847 (19244 euros). A week ago, this data coin was worth about 17000 US dollars.

The fundamental reason for the price rise is that investors predict that they will not raise interest rates again.

Recently, the central bank raised interest rates significantly to curb inflation. But now it seems likely that inflation has finally peaked. Therefore, interest rates may not rise as rapidly as in previous years.

When the interest rate is high, the family focuses on reducing expenses and increasing deposits, and enterprises are more cautious about investing in huge assets. However, rising interest rates and quantitative tightening by global central banks have also played a leading role in the recent bear market in the stock market. This is mainly because raising interest rates will generally lead to the risk sale of individual stocks and other properties and their cryptocurrency.

The interest rate increase of the Federal Reserve is called to cool inflation and alleviate the overheated economy, but so far, the interest rate increase of the Federal Reserve has only had a negative impact on cryptocurrency, causing the price to fall in the past nine months.

In the spring of 2022, the encryption market was hit hard. Among other things, the use value of Bitcoin continued to decline: from $45000 in April to $19000 in June. In November, when FTX, the data encryption trading center, collapsed, trust received a new severe blow. Since then, the Bitcoin market has been fluctuating around $17000.

At this stage, the slowing inflation seems to be a welcome change, because the market is seeing new opportunities on a new clean slate at the beginning of the new year.

The value of the second largest cryptocurrency, Ether, also increased significantly. On Monday morning, investors paid $1542. This is more than 16% higher than a week ago. Other digital currencies also rose.