The leading cryptocurrency managed to reach the level of 38 thousand dollars again. The asset’s rise is supported by expectations of the Fed’s policy change.
Today, Bitcoin briefly rose to an 18-month high of $38,264. This highlighted investors’ interest in risky assets.
The asset managed to rise by approximately 130 percent in 2023 after a major decline in 2022.
Will interest rates fall?
The rise experienced by Bitcoin seems to be linked to expectations that the Fed will reduce interest rates as inflation slows down.
Recent comments by Fed official Christopher Waller indicate that if the current trend in inflation continues, a rate cut may also occur.
This change in the Fed’s monetary policy caused investors’ interest in cryptocurrencies to increase. The rise experienced by Bitcoin is the most important indicator of this.
Dexterity Capital’s Michael Safai sees this as a harbinger of a potential bull rally in crypto markets.
New postponements from SEC
The SEC’s postponement of its decision on Bitcoin ETF proposals did not affect BTC’s rally.
The regulator postponed its decision on both Franklin and Hashdex’s spot Bitcoin ETF offerings.
Bloomberg’s ETF analyst James Seyffart said that the SEC acted too early against Franklin and emphasized that they are not expected to make another decision until January 1.
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