Bitcoin, the leading cryptocurrency, staged a notable recovery this Tuesday, surging briefly to $38,264, marking its highest level in 18 months. This surge reflects investor enthusiasm for higher-risk assets.
The top digital currency has now surged approximately 130% this year after its significant downturn in 2022.
More Interest Rate Cuts on the Horizon?
The resurgence in Bitcoin’s value closely ties into expectations of the Federal Reserve cutting interest rates to counteract slowing inflation. Recent remarks by Federal Reserve Governor Christopher Wall point to a potential interest rate cut if the current inflation trend persists.
This shift in monetary policy is fueling investors’ appetite for cryptocurrencies, evident from the notable recovery seen in Bitcoin. This could serve as a prelude to a potential new bullish market in the cryptocurrency arena.
Further Delays from the Securities and Exchange Commission
The Securities and Exchange Commission’s (SEC) decision to delay its ruling on immediate Bitcoin ETFs did not dampen the upward trajectory. The SEC postponed its rulings on investment funds from both Hashdex and Franklin Bitcoin.
READ MORE Charles Edwards, Cryptocurrency Analyst, Provides Insightful Perspective on Bitcoin's Price Outlook
“Marvelous. The Securities and Exchange Commission acted exceptionally early regarding Franklin. It wasn’t slated for another decision until the 1st of January,” noted James Siefart, a prominent expert at the Training Institute.
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