Bitcoin is a new kind of money and an innovative payment network. It is a decentralized digital currency used for encrypted, peer-to-peer transactions without needing a central authority. Now, a report states that Bitcoin has risen the most in more than a month as expectations grew that a cut in lending rates by the Federal Reserve would increase demand for speculative assets.
Bitcoin jumped the most in over a month amid Federal rate cut optimism
According to the information, the first digital currency gained as much as 6.4% to $61,337 on September 17, 2024. This is the intraday increase since the beginning of August. In addition to Bitcoin, other cryptocurrencies like Ether, Dogecoin, and Solona also rose.
The market had around a 55% chance that the Fed policymakers would report a 50-base point rate cut today. This will be announced at the end of the central bank’s two-day policy meeting.
Shiliang Tang, president of the principal trading firm Arbelos Markets said, “I think a combination of increasing correlation between crypto and traditional markets recently” is pushing the price of Bitcoin more elevated.
Additionally, MicroStrategy Inc.’s announcement Monday to sell convertible notes to purchase more Bitcoin is adding to optimism, Tang said.
Since holding a record high of nearly $74,000 in March, Bitcoin has been trading in a fairly tight range. “The market remains relatively thin and it does not take incrementally much on either side to see a move like this,” said Stephane Ouellette, co-founder and chief executive officer of FRNT Financial.
