Bitcoin Rises at the Weekend: What’s Driving the Uptrend?
With multiple tailwinds anticipated in the upcoming months, traders remained upbeat as Bitcoin’s price closed on Friday at a three-week high, continuing its advances into the weekend.
- The U.S. Federal Reserve’s decision to stop raising interest rates, which peaked in July of last year with a target range of 5.25%–5.5%, is one example of this.
- Other positive factors might be the results of the November presidential election in the United States, where Kamala Harris and Donald Trump will probably determine the course of crypto policy in the country.
On the other hand, Jerome Powell, the chairman of the Federal Reserve, made hints last week about rate cuts that would take place next month, suggesting that the US central bank is content with the rate of inflation slowing down and is becoming more concerned about the weakening labor market. Bitcoin rose above $62,000 for the first time since August 2 as a result of the rhetoric, which also helped push risky assets.
Investor Optimism Grows as US Labor Market Data Signals Possible September Rate Cuts
Enhancing investor confidence that the central bank would probably lower rates in September was positive data from the US labor market.
The Bureau of Labor Statistics revised away 818,000 jobs; that is, new jobs that were reported in previous months non-farm payrolls data. This data was key to supporting the ‘hot jobs market’ narrative, but it turns out it never happened,
Ryan McMillin, chief investment officer at Merkle Tree Capital
He goes on to say that selling pressure from the US government, Germany, and Mt. Gox also seems to be in the past.
This setup could see Bitcoin buck its historical September weakness and potentially break to a new all-time high; after six months of trading sideways, a strong rally is looking increasingly likely before year-end.
McMillin
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