Investors woke up today to a rally in the crypto market, led by the flagship cryptocurrency, Bitcoin. The movement has ignited optimism across the market as participants hope for a continuous trajectory. Bitcoin topped $61,000 earlier today even though it has now shed some of its gains and is not trading around the $60k zone.
Consequently, the total crypto market valuation has jumped to $2.08 trillion after spiking by 2% according to CoinMarketCap data. With this latest surge, investors are curious as to why the price of Bitcoin is up today. Let us look at some of the reasons catalyzing the upward trend in the market today.
Why Bitcoin Price is Up Today
Bitcoin has been consolidating between the $55,000 and $6,000 zone in the past seven days until its price broke the $61k mark earlier today. Here are some of the factors that caused the hike.
Anticipation of Rate Cuts by the Federal Reserve
One of the major reasons driving the entire crypto market surge today is the expectancy of a significant rate cut today by the Federal Reserve. This decision will be made during today's Federal Open Market Committee (FOMC) meeting. The Federal Reserve would decide whether or not to cut the interest rate by a quarter or half point.
Following a series of rate hikes that increased borrowing costs to the highest level in about 20 years, the market expects the Federal Reserve to implement a cut that would be widely beneficial. In anticipation, traders have upped their bet as the CME Group's FedWatch tool reflects a 61% likelihood of a half-point rate cut in contrast to a 39% quarter-point hike.
A 50-point cut would be beneficial for Bitcoin and other cryptocurrencies since lower interest rates catalyze investments in riskier assets like crypto.
Other factors include; Rising Bitcoin Spot ETF Inflows and the Stock Market's Performance Affecting Bitcoin.
Read more on 36crypto.com
The post "Here is Why the Bitcoin Price Surged Today" first appeared on 36crypto.com News.
