Sep 23 2024: Bitcoin surged to a one-month high on Monday, continuing its gains from last week as traders reacted positively to an interest rate cut by the Federal Reserve, with additional key economic cues expected later this week.
The cryptocurrency rose 1.3%, reaching $63,932.1 by 00:58 ET (04:58 GMT), marking a breakout from the $50,000 to $60,000 range it had been trading in for most of the year.
Bitcoin Strengthens Amid Rate Cut Hopes
Bitcoin outpaced much of the broader crypto market as optimism remained high ahead of more signals on U.S. interest rates and economic conditions. Traders are keeping a close eye on several upcoming speeches from Federal Reserve officials, particularly Fed Chair Jerome Powell’s address on Thursday.
Additionally, Friday’s release of the PCE price index data, the Fed’s preferred inflation gauge, could influence the central bank’s plans for further interest rate cuts. Last week, the Fed reduced rates by 50 basis points, signaling the start of an easing cycle, with analysts expecting further cuts of at least 125 basis points by year-end.
Beyond the U.S., central bank meetings in Switzerland and Sweden are expected to yield further rate cuts. Lower rates tend to benefit Bitcoin, as they increase liquidity for speculative investments like cryptocurrency. However, gains in Bitcoin remain somewhat limited due to the Fed’s indication that rates may not fall significantly in the medium-to-long term.
Regulatory and Global Challenges
Bitcoin’s advance is also tempered by regulatory uncertainties, particularly with the upcoming 2024 U.S. election. Additionally, recent signals from the Bank of Japan, hinting at potential rate hikes, have also limited Bitcoin’s rise, though resistance to future hikes is expected as Japan undergoes leadership changes.
Mixed Performance Across Crypto Markets
The broader cryptocurrency market showed mixed results. Ethereum (Ether) rose 2.9% to $2,657.20, while other major coins like Solana (SOL) and XRP fell by 0.9% and 0.5%, respectively. ADA and MATIC saw marginal gains, and DOGE, among the popular meme tokens, edged up 0.3%.
