The Bitcoin price has once again risen above $26,000, responding to the extremely bullish macro environment. If the rally continues and a breakout above the current key resistance on the daily chart is confirmed, the Bitcoin price could be in for a bullish weekend.

The macro environment has changed radically in the last week. First and foremost, the US Federal Reserve (fed) has turned on the money printer again to bail out US banks. Within the last week, the Fed added a whopping $300 billion in assets to its portfolio, offsetting quantitative tightening (QT).

This amount is record-breaking. The only time the Fed added a larger amount was shortly after the March 2020 crash caused by COVID ($500 billion). In addition, bond yields have crashed by over 25%. The Consumer Price Index (CPI) has also fallen to 6.0% on an annual basis, in line with expectations.

(By Jake Simmons)