Bitcoin (BTC) reaches a new 6-month high as the virtual currency hits $24,000. BTC, the largest cryptocurrency in the world, continues to move higher as it has already expanded by almost 50% in just a few months. The question is whether the current bull market will continue in the near future and if Bitcoin will hit $30,000.
Bitcoin Surges Above $24,000 Hitting 6-month Highs
Bitcoin reached its highest price in almost 6 months as the value of the largest digital currency reached and surpassed $24,000. According to data shared by CoinGecko, Bitcoin was able to reach its highest price since August 2021, when the bear market became stronger for BTC and other virtual currencies. Bitcoin experienced over 5% gains in the last few hours, becoming one of the fastest-growing digital assets among the top 100 cryptocurrencies.
This shows that there is a clear interest in purchasing Bitcoin and other digital currencies, as the whole market is registering gains today. Ethereum moved higher by 7.3% reaching a price per coin of $1.680 per coin. Meanwhile, Binance Coin (BNB), the virtual currency of the Binance ecosystem surged by 7.4% as well and hit $330 per coin.
XRP registered gains of 4.1% reaching a price per coin of $0.415 and a market capitalization of $21 billion. At the same time, Cardano (ADA) reached $0.40 and its market capitalization surged above $14 billion. Therefore, the recent move higher affected most digital assets in the top 10.
But what are the reasons behind the most recent price increase for Bitcoin? There are some things that could have had an impact on BTC and the recent move higher experienced by the largest cryptocurrency in the world. The first thing that we should take into consideration is related to the U.S. Fed moving interest rates higher by 0.25 percentage points.
The important thing about the Fed’s decision is related to the way in which they are planning to move and manage interest rates in the future. The higher the interest rates, the harder it becomes for risk assets to move higher. Nevertheless, there are expectations from market participants to see the Fed loosening its stance on interest rates in the coming months.
One of the things that the central bank of the United States takes into consideration is related to economic conditions. That means that if economic conditions look solid and inflation moves lower, it might be possible for the Fed to start lowering interest rates. With lower interest rates, risk assets such as stocks and cryptocurrencies tend to move higher.
This is different to what happened a few years ago when Bitcoin was an uncorrelated asset. Nevertheless, with the growth experienced by the crypto market, a large number of institutional investors entered the industry and are now having an impact on the way in which Bitcoin behaves. The macro-environment has now a clear impact on how digital assets behave and, of course, on Bitcoin’s price. It is now just a matter of time to see how Bitcoin will behave in the near future and whether this is just the beginning of a new bull market in the crypto industry.