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Bitcoin (BTC/USD) price made a bullish breakout on Monday after spending the past few weeks in an extremely tight range. It jumped to a high of $30,481, the highest level since June last year. This recovery means that Bitcoin has risen by over 50% from its lowest point this year. It has also outperformed other popular assets like gold and the S&P 500.
Upcoming bank earnings season
The first main reason why Bitcoin price just soared is the upcoming bank earnings season, which will start on Friday. Large national banks like JP Morgan and Wells Fargo will start publishing the results followed by regional banks next week.
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Analysts believe that this will be a difficult earning season for regional banks. Most of these banks saw capital flight during the collapse of Silicon Valley Bank and Signature. Additionally, most of them have exposure to the risky commercial real estate industry that I wrote about here. Bitcoin did well when the volatility in the banking sector was at its peak.
Federal Reserve capitulating
The other reason why Bitcoin price is soaring is that there are signs that the Federal Reserve is capitulating. Analysts believe that the Fed has one more rate hike to go before pausing its rate hikes.
Besides, many other central banks have paused their hikes. Earlier this month, Reserve Bank of Australia and Reserve Bank of India all decided to pause. Bank of Canada has also taken a strategic pause as it observes the state of the economy.
Jobs data published on Friday showed that wage growth rose at the slowest pace since 2021. And analysts expect the inflation numbers scheduled for Wednesday to show that the headline consumer price index (CPI) dropped to 5.2%.
Therefore, since Bitcoin price crashed during the hiking cycle, analysts expect it to do well when the Fed pauses. This also explains why whales have increased their allocation to Bitcoin.
Ethereum’s Shapalla upgrade
Meanwhile, BTC price is rising because of the upcoming Shapalla upgrade, which will be the biggest crypto news of the week. The update will make it possible for Ethereum stakers to withdraw their funds and rewards.
In the short term, the update will likely have some volatility in ETH markets as concerns about regulations remain. As such, there is some rotation from Ethereum to Bitcoin since American regulators believe that BTC is not a security.
Technicals were bullish
![4 reasons why the bitcoin price just soared above $30,000 2 4 reasons why the bitcoin price just soared above 30000](http://cryptocurrencynewscast.online/wp-content/uploads/2023/04/4-reasons-why-the-Bitcoin-price-just-soared-above-30000.png)
![4 reasons why the bitcoin price just soared above $30,000 3 4 reasons why the bitcoin price just soared above 30000](http://cryptocurrencynewscast.online/wp-content/uploads/2023/04/4-reasons-why-the-Bitcoin-price-just-soared-above-30000.png)
Finally, Bitcoin price made a bullish breakout because of technical position. As shown above, BTC was forming a bullish flag pattern on the four-hour chart. In price action analysis, this pattern is usually a bullish sign. Also, BTC remained above the 50-day moving average, which is also another positive catalyst.
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