VeChain’s (VET), after many years of price stagnation, is now finally experiencing some positive movement. CoinGecko data VET price rose by 33.1% last week. Charts for the next 14 days show that the VET price rose 54.2%. And charts from the month before showed 55.2%. Discuss why VeChain’s (VET), and whether or not the price of this asset will rise in the next few days.
VeChain price rise: What is driving it?
VeChain’s (VET’s) price surge came as Bitcoin (BTC), turned bullish. BTC’s price rally came after it regained the $80,000 barrier earlier this week. VET’s trend is likely to follow BTC.
VeChain’s (VET), and the larger crypto market rally, was caused by several factors. First, the cryptocurrency event at Trump’s White House caused a huge surge in investor trust. Trump announced that the US is planning to purchase large amounts of Bitcoins (BTC) as well as other crypto currencies.
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VeChain’s (VET’s) recent rally may be due to the US Treasury’s increased bond purchases. It may be that the move increased liquidity in the market.
The trend may also continue in August. Federal Reserve interest rate cuts could be on the way later in this year if inflation is lower. The hope of lower interest rates could have also led to VeChain’s (VET), inflows.
Can the Rally continue?
VeChain’s price may be affected by the recovery of cryptocurrency markets. First, US Treasury may need more money to fill its pockets. This could lead to a liquidation of the crypto market. This could cause VET to plummet.
Second, despite the fact that inflation is down, it remains above Federal Reserve’s target of 2%. There is a chance the Federal Reserve could raise rates to offset high costs. VeChain could suffer as a result of such an action.
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Source: watcher.guru
