Bitcoin price is back at six-week highs and BTC is targeting $21,000 — here are three reasons why the crypto markets are surging.

1. Fed could change its tune on rate hikes. Rumors are gathering over the outlook for rate hikes as the Fed runs out of room to maneuver. After next month’s hike, suspicions are that policy will begin to U-turn, making smaller hikes in subsequent months before reversing altogether in 2023.

2. Bitcoin volatility snaps record low levels. A look at the Bitcoin historical volatility index (BVOL), recently at multi-year lows seen only a handful of times, shows that Bitcoin still has a way to go to abandon this characteristic.

3. Dollar eyes a new chapter. After a parabolic uptrend throughout 2022, the U.S. dollar is only just beginning to show signs of weakness. The U.S. dollar index (DXY) recently hit its highest levels since 2002, and momentum may yet return to take it even higher — at the expense of risk assets and major currencies alike. For the meantime, however, DXY is under pressure, and its descent came in lock step with a return to form for Bitcoin and altcoins.