Bitcoin surges to hit $17,000 after good news from Brazil

Bitcoin (BTC) struggled to break through $16,500 yesterday after Monday’s dip, but it finally did last night. Then the price shot up quickly and even briefly exceeded $ 17,000. Since then, bitcoin seems to be finding support around $16,900 and at the time of writing is trading at $16,897 on Binance and $16,320 on Bitvavo.

This means that the bitcoin price is 2.7% up today. Trading volume fell 1.7% in the past 24 hours. The total market capitalization is $326 billion and the dominance is 38%. The Fear & Greed Index comes out at 29 (Fear).

Brazil recognizes bitcoin as a means of payment, creates a short squeeze

The rise of bitcoin, and the rest of the crypto market, may be related to positive news from Brazil. A bill was passed there last night to recognize bitcoin as a means of payment in the country. More on this later on Crypto Insiders.

The news caused a price increase that was then accelerated by a small short squeeze, reports Dutch analyst Maartunn:

A lot of fear in the crypto market

However, most investors remain very cautious. This is because the consequences of the FTX fiasco continue to pile up, but also because the macroeconomic situation is still bad and central banks hawkish stay.

Meanwhile, concerns in the financial markets are also increasing about the massive protests in China against the Covid lockdown. Meanwhile, fears of a recession are on the rise again.

In addition, Genesis is not trying to go bankrupt. If this crypto company goes under, it could cause a huge blow. The company is affiliated with the Digital Currency Group (DCG) and thus parties such as Grayscale Investments, the largest bitcoin asset manager in the world.

Will Powell move markets again?

More volatility may follow today. Jerome Powell, chairman of the Federal Reserve, is giving a speech tonight. If he bad hawkish or very much dovish sounds about the policy on interest rate hikes, it could provoke another strong reaction in the markets.

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