YEREVAN (CoinChapter.com) – Helium HNT Price surged 65% on Dec 6, peaked at a 13-month high of $5.0, then corrected down to $4.0 in several hours, still sitting at a year-high. The token’s trading volumes also surged by over 1,000%, reaching $29,5 million.
Helium (HNT) Price is Booming After Bitcoin
In detail, Helium was one of the highest daily winners on Dec 6. Additionally, its daily chart printed a Golden Cross, the first occurrence on the HNT/USD chart ever.
In short, a Golden Cross is a bullish signal in technical analysis, occurring when a shorter-term moving average, like the 100-day average (green), crosses above a longer-term moving average, like the 200-day average (blue). This is often seen as a sign that the market’s momentum is shifting upward, suggesting a potential increase in price.
Meanwhile, the reasons behind the bullish move are noteworthy.
Bitcoin Pushed Helium. What Pushed Bitcoin?
As mentioned, Bitcoin propelled the Helium HNT price higher, along with the rest of the altcoin market. However, the reasons behind Bitcoin’s uptrend are also noteworthy. The rally was partly fueled by “panic buying,” as traders and investors rushed into Bitcoin amid favorable market conditions.
Moreover, in a Dec 4 report, crypto investment services provider Matrixport noted the elevated levels of Bitcoin perpetual futures premium versus the spot price, which could indicate a fear of missing out (FOMO) driving the markets.
This surge in demand helped Bitcoin clear significant resistance at $38,000, a level that had capped prices for most of November. As a result, Bitcoin achieved a fresh 20-month high above $44,000 on Dec 6.
Additionally, market participants were betting on lower interest rates, with an 86% probability of a lower Fed funds rate by May, according to the CME FedWatch tool. This expectation was based on dovish talk from some Federal Reserve officials, a weakening dollar, and relatively sturdy domestic data.
Investors continued to park their cash with crypto funds, with asset manager CoinShares reporting another $176 million of net inflows last week, continuing a 10-week streak totaling $1.76 billion. This steady inflow of investment into crypto funds indicates a sustained interest in digital assets, including Bitcoin, which, subsequently benefitted Helim HNT price.
