The leading cryptocurrency is back on the upswing, with BTC back above $63,000, leaving many wondering why Bitcoin is rallying today. The asset struggled throughout August and September for a myriad of reasons. However, the trend appears to be changing for Bitcoin as October approaches.
Bitcoin appears to be benefiting from a change in macroeconomic circumstances. In particular, the U.S. economy received a significant boost from the central bank’s decisions on Wednesday. However, let’s explore whether that is the sole reason behind BTC’s latest boost.
Bitcoin Returns to $63,000 as BTC Looks to Surge
2024 has been a mixed year for Bitcoin. The asset made a splash at the start of the year, becoming the first cryptocurrency-based ETF in the United States. Just three months later, the token hit an all-time high of $73,000. However, it has struggled to reach that mark in the months since.
The token had been flat in August and September, along with the broader crypto market. That changed on Thursday, as BTC climbed back above $63,000, signaling Bitcoin is enjoying a notable rally. Over the past seven days, the asset has gained more than 8%, according to CoinMarketCap. However, it has gained more than 5% in the past 24 hours alone.
The main reason for this increase seems to be the decision of the US Federal Reserve to finally cut interest rates on Wednesday. The central bank decided to cut interest rates for the first time in four years. Moreover, they finally tackled interest rates that had been at a 23-year high.
The decision was driven by manageable inflation from the agency. The Fed has set a 2% inflation target that the market has proven to be achievable. That motivated the decision and shows positive macroeconomic developments for the country. It seems to be the most direct indication of BTC’s recent surge.
Its value should only continue to rise. The 2024 US presidential election has turned crypto into a major issue. Republican candidate Donald Trump has focused on the flagship asset. Just yesterday, he paid for a burger with the digital asset. That likely helped push the token’s value back to current levels.
