Why is the Bitcoin (BTC) Price Up Today?

2023-11-02 06:02:26

TL;DR

BTC’s price surged to near $36,000, potentially influenced by the US Federal Reserve’s decision to pause interest rate hikes, though future increases remain possible.
MicroStrategy’s acquisition of an additional 155 BTC, expanding their holdings to a value of over $5.5 billion, may also contribute to the cryptocurrency’s price increase.
The broader crypto market is bullish, with a market cap of $1.35 trillion and anticipation of positive regulatory developments, like a Ripple lawsuit victory or a BlackRock BTC ETF approval, could further stimulate the sector’s growth.

The Fed’s Decision

The price of bitcoin (BTC) briefly spiked to almost $36,000 a few hours ago, infusing additional enthusiasm in the entire cryptocurrency space. One factor behind the 18-month peak could be the decision coming from the US Federal Reserve.

BTC Price, Source: CoinGeckoAmerica’s central bank paused interest rate hikes, keeping the figure unchanged between 5.25% and 5.50%. However, Chairman Jerome Powell left the door open for another raise in the future depending on the macroeconomic conditions

Raising interest rates is considered a bearish element for risk-on assets such as cryptocurrencies as they might push investors towards relatively safer options. Bitcoin has plunged many times in the past when the Fed lifted the percentage.

MicroStrategy’s BTC Purchase

Another factor that might be playing a role in BTC’s price increase could be the latest purchase coming from the American company MicroStrategy

The largest corporate holder of the leading digital assetboughtan additional 155 BTC in October for approximately $5 million. The firm currently holds 158,400 BTC, equaling over $5.5 billion (at today’s rates)

The Overall Green Picture

Last but not least, bitcoin’s impressive price performance could be a result of the bullish sentiment that has reigned in the digital asset industry lately. The global cryptocurrency market capitalization has surged to $1.35 trillion (per CoinGecko’s data), while numerous tokens, including Ripple (XRP), Solana (SOL), Polkadot (DOT), Avalanche (AVAX), and more are well in the green.

Some analysts have assumed that the sector could thrive even more in the near future should some regulatory developments be in the cards. A potential decisive Ripple victory in the lawsuit against the US SEC or the possible approval of BlackRock’s spot BTC ETF in America are some examples

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