[What happened to the IOTA cryptocurrency price? 】
The IOTA token put on a stunning performance this week, surging to a high of $0.29, its highest level since November last year, and surging more than 83% since its 2023 nadir.
There are three main reasons behind IOTA becoming one of the best-performing cryptocurrencies this week. First, its upward trend is consistent with the performance of the overall crypto market, especially after Bitcoin broke through $38,900 on Friday to reach an 18-month high. Bitcoin continues to rise as expectations for a spot Bitcoin ETF heat up, with companies such as Blackrock, Invesco and Franklin Templeton filing applications.
Secondly, the market generally expects the Federal Reserve to start cutting interest rates in the first half of 2024. In a major statement this week, Bill Ackman predicted that the Federal Reserve will begin cutting interest rates in the first quarter. Ackman's many predictions about the Fed and the bond market this year have been spot on.
Another boost for IOTA came from Abu Dhabi, where the IOTA Foundation secured registration from ADGM, becoming the first organization in the country to receive a Distributed Ledger Technology (DLT) registration. As part of the registration, the foundation will invest $100 million in IOTA tokens in installments over the next four years, which is a huge amount of money for IOTA, which has a market capitalization of over $830 million.
Additionally, IOTA’s open interest in the futures market reached an all-time high of over $43 million, surpassing the previous record in October 2021, according to CoinGlass data. Open interest is an important indicator of outstanding orders in the futures market, with high numbers indicating strong demand for the asset.
