The price of Bitcoin (BTC) has significantly increased, approaching the $36000 mark, causing ripples in the cryptocurrency market. Although multiple factors have contributed to price increases, an important driving factor seems to be the Federal Reserve's decision to stop raising interest rates, although there may be further hikes in the future
The price of Bitcoin (BTC) has significantly increased, approaching the $36000 mark, causing ripples in the cryptocurrency market. Although multiple factors have contributed to price increases, an important driving factor seems to be the Federal Reserve's decision to stop raising interest rates, although there may be further hikes in the future.
In addition, driven by expectations of positive regulatory developments, the overall sentiment of the cryptocurrency market remains bullish, with a total market value of approximately $1.36 trillion.
Institutional focus
Recently, the exchange traded funds (ETFs) listed by renowned financial giants such as ARKInvest, BlackRock, and Invesco on the website of Depository Trust and Clearing Corporation (DTCC) in the United States have sparked speculation about their strategic intentions. The listing of these ETFs clearly indicates that the goal of these financial giants is to attract the attention of financially strong investors and institutional participants.
This type of ETF is designed to meet the needs of larger investors who are more willing to enter the cryptocurrency market in a more regulated and mainstream manner. They do not need to directly own Bitcoin to invest in it, which is an attractive proposal for institutions seeking to diversify their investment portfolios.
The listing of these ETFs on DTCC (an important infrastructure provider in the financial industry) marks an increasing acceptance and integration of cryptocurrencies in the traditional financial ecosystem.
The impact of the Federal Reserve on the price of special currency
According to CoinGecko, the current BTC price is $35365, with a 24-hour increase of 2.5% and a 7-day increase of 2.0%.
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The decision of the Federal Reserve to maintain interest rates unchanged without further rate hikes plays a crucial role in the current state of the cryptocurrency market.
Federal Reserve Chairman Jerome Powell has reserved the possibility of future interest rate hikes, depending on macroeconomic conditions. Although this move has temporarily eased the pressure on cryptocurrency enthusiasts, there is still uncertainty about future interest rate hikes.
Historically, interest rate hikes have been seen as a bearish signal for risky assets, including cryptocurrencies. When interest rates rise, investors usually seek safer options because these assets are considered more stable and provide better investment returns.
Therefore, the Federal Reserve's decision to suspend interest rate hikes provides a favorable environment for the flourishing development of BTC and the broader crypto market.
BTC's astonishing growth so far this year
The rapid growth of BTC since the beginning of this year cannot be underestimated, and its value has increased by 108% so far. This significant growth greatly surpasses other major investment choices in the financial industry. The impact of this indicator is far-reaching, as it highlights the increasing prominence of Bitcoin as an investment asset, even surpassing traditional options such as stocks and bonds.
Investors are attracted to Bitcoin not only because of its rich return potential, but also because it can serve as a tool to hedge against inflation and economic uncertainty. The performance so far this year highlights the continued interest of retail and institutional investors in Bitcoin, as they recognize its long-term value and potential to reshape the financial landscape.
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