The Bitcoin rate this week again exceeded the mark of $60 thousand per coin. This comes as former US President Donald Trump launched his cryptocurrency venture, World Financial Liberty, and awaited a Federal Reserve decision on interest rates. At the time of publication of this note, the Bitcoin rate has dropped to approximately $59,890 per coin (data from CoinDesk).
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These days, a two-day meeting of the Federal Reserve is taking place, during which the organization’s future policies are discussed. The US central bank is expected to cut interest rates for the first time in four years, which will likely lead to a rise in risk assets such as Bitcoin and other cryptocurrencies.
«Bitcoin will likely respond to news of the Fed rate cut with some weakness as short-term market dynamics filter out. But the long-term effects of easing monetary conditions will fuel a new growth cycle for Bitcoin, Ethereum and the rest of the market. “Bitcoin has been somewhat correlated in the past with major technology indices such as the Nasdaq and has generally moved in line with monetary conditions as investors seek yield in a lower rate environment,” said Philipp Pieper, co-founder of the company. Swarm Markets.
Over the course of this year, Bitcoin has traded in the range from $55 thousand to $70 thousand. Investors expect a reduction in the Fed key rate and the growth of spot exchange-traded funds (ETFs) on Bitcoin. The next catalyst that could shake up the digital asset market should be the upcoming US presidential elections in the fall.