Bitcoin price is rising, approaching USD 70,000. Ether, in turn, may fight for the level of USD 3,400. Is this the effect of what happened on Bitcoin 2024?
Bitcoin price is rising
Today, one bitcoin costs $69,550. This means that the ATH from the previous cycle has been broken again. The price almost broke $70,000. Over the course of a day and a week, the price increased by 3%.
Ether is also getting more expensive. 1 ETH is now worth 3373 USD, which means an increase of 4.7% since yesterday. However, on a 7-day scale, investors are still losing 3.1%.
Reasons for the increases
Why are cryptocurrencies getting more expensive again? The easiest way would be to say that it’s the result of words that were said during Bitcoin 2024. The conference was very loud. The biggest media buzz was generated by Donald Trump’s speech.
The presidential candidate promised that, if he wins the election, he will support the blockchain market. He declared that he will block any attempts to sell more than 200,000 BTC that the country’s government has (these are funds seized from criminals). There was no declaration to add bitcoins to the Fed’s reserve. However, the Republicans seem to have divided roles.
The point is that the latter – adding BTC to the central bank’s reserves – was announced the same day by Senator Cynthia Lummis. She said she would like the US to start buying bitcoins. Within two decades, it would have 5% of the cryptocurrency’s supply – 1 million BTC.
This bitcoin reserve that we’re going to create is going to start with the 210,000 bitcoins that President Trump just mentioned, which are going to be moved into a reserve, stored in different vaults, and that’s just the beginning.
– she said.
Interest rates down?
So is bitcoin rising just because of these words? That would be an unwise move for the market, as recent polls in key states show that Trump’s success is in question.
There are more reasons for growth, however. According to Fed Watch Tool data, the probability of the first 25 bp cut in US interest rates in September is 87.7%. The probability of a 50 bp cut is 11.9%. The scenario in which rates remain at their current level is considered… unrealistic.
Lower interest rates in the US mean growth in almost all markets. Hence, investors may assume that it is worth buying cryptocurrencies now.
