Wow, Bitcoin is on the rise! In just one hour, the price has increased by 1.55%, now it has reached $60,480.58. Why is that possible? It turns out there is big news from the American central bank, the Federal Reserve. They have just cut the interest rate quite deeply, namely 50 bps. This is the first time in four years that they do something like this!
Why does cutting interest rates make Bitcoin go up? Gini, if interest rates go down, investors become more motivated to invest because it is very easy to borrow money. So, they are transferring funds to Bitcoin. Moreover, inflation has also started to decrease, so the economic condition in general is improving.
A well-known crypto Twitter account, WatcherGuru, also follows nimbrung. He said, the decision of the Federal Reserve made investors more optimistic. In fact, there is a fund of $161 million that goes into 10 Bitcoin ETFs. It's crazy! This means that many people believe that Bitcoin has a bright future.
So, the point is, the increase in the price of Bitcoin this time is due to several factors, ranging from the central bank's decision, the decrease in inflation, to the increase in investor interest.
The bottom line: Bitcoin is on the rise because the economic conditions are good and many investors are interested.
