The leading cryptocurrency has been on a tear higher since Friday.

Bitcoin has shaken off its bearish blues and surged higher since Friday. On Monday, it touched a 24-hour high of $48,080.62, building on a sharp rally late on Sunday evening. The bullish trend in bitcoin is in the face of the continuing war in Ukraine, as well as hawkish pronouncements by Fed chair Jerome Powell meant to counter inflation. (CNBC)

As this is being written, bitcoin is hovering above the $48,000 level, and similar rallies are being seen in other cryptocurrencies.

Technically, BTC/USD has broken out on decent volumes from an ascending triangle as shown in the black lines. The breakout has also put BTC in the green as far as 2022 is concerned.

Triggers for bitcoin rally

One commonly cited factor behind BTC’s current rally is Terra, the network backing the Luna token, which is accumulating a warchest reserve fund of $10 billion for its TUSD stablecoin.

Other bullish pronouncements include from Goldman Sachs (NYSE: GS), which conducted an over-the-counter trade in BTC, and investment banker Cowen (NASDAQ: COWN), which set up a crypto trading and custody facility for institutions.

One analyst said bitcoin was playing a defensive role amidst global turmoil.

“Crypto is not trading in a vacuum,” said Chris Kline, chief operating officer and co-founder of Bitcoin IRA. “Geopolitical uncertainty, inflation, and a serious potential for a recession are giving both retail and institutional investors a reason to build a defensive strategy. Crypto is playing an integral role in that plan.”

Meanwhile, Coindesk reported that fresh investment inflows into crypto funds reached their highest amount in three months last week, with European funds leading the charge.

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