The leading cryptocurrency is back in its positive ways, as BTC has returned above $63,000, leading many to question why Bitcoin is up today. The asset has struggled throughout August and September for a myriad of reasons. Yet, the tide looks to be changing for Bitcoin as October approaches.
Bitcoin appears to be benefiting from a shift in macroeconomic circumstances. Specifically, the United States economy received a notable boost from Central Bank decisions that took place Wednesday. Yet, let’s explore if that is the only reason behind BTC’s most recent boost.
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Bitcoin Returns to $63,000 as BTC Looks to Surge
2024 has been a year of highs and lows for Bitcoin. At the start of the year, the asset enjoyed a game-changing development, becoming the first crypto-based ETF in the United States. Just three months later, the token reached an all-time high of $73,000. Yet, it had struggled to reach that mark in subsequent months.
The token failed to increase in August and September, along with the overarching crypto market. That changed Thursday, when BTC climbed back above $63,000, showing Bitcoin enjoying a notable rally. Over the last seven days, the asset has increased more than 8%, according to CoinMarketCap. Yet, it has increased by more than 5% in the last 24 hours alone.
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The primary reason for the surge looks to be the US Federal Reserve decision to finally cut interest rates on Wednesday. The Central Bank opted to institute interest rate cuts for the first tine in four years. Moreover, it saw them finally address rates that had been at a 23-year high.
The decision was rooted in controllable inflation from the agency. The Fed had a 2% inflation target that the market had proven to make headway toward. That drove the decision and showcased positive macroeconomic development for the country. That looks to be the most direct indication of BTC’s recent surge.
It should only continue to increase in value. The 2024 US presidential election has made crypto a key issue. Republican nominee Donald Trump has been focused on the leading asset. Just yesterday, he paid for a burger using the digital asset. That is likely helping push the token back to its current level.
