The most popular cryptocurrency, Bitcoin, has recovered above $38,000. A change in U.S. Federal Reserve policy is expected, which has fueled its climb.
Tuesday saw a quick spike in Bitcoin to $38,264, the highest level in 18 months, reflecting investor appetite for riskier investments.
The leading digital currency saw a sharp decline in 2022 and has since recovered by almost 130% this year.
More rate cuts?
The recent spike in the value of Bitcoin is directly related to expectations that the Federal Reserve may lower interest rates in response to declining inflation.
According to Governor Christopher Waller of the Federal Reserve, if the present inflation pattern continues, a rate drop may be imminent.
The amazing rebound of Bitcoin indicates that investors’ interest for cryptocurrencies is growing as a result of this change in monetary policy.
This is seen by Dexterity Capital’s market analyst Michael Safai as a possible sign of impending cryptocurrency market bull runs.
More delays from the SEC
The surge has not been impacted by the U.S. Securities and Exchange Commission’s (SEC) decision to postpone its ruling regarding the spot Bitcoin ETF.
The SEC has deferred making decisions about the Bitcoin ETFs offered by Franklin and Hashdex.
“Whoa. The SEC moved quickly on Franklin. They weren’t scheduled for another decision until January 1st, according to eminent ETF specialist James Seyffart.