Bitcoin broke a new price record for the year, reaching the $35,920 in the early hours of this Thursday (2). In October, the digital currency outperformed all stock market assets, gaining more than 28% over the month, while stocks plunged around 10% over the same period.
In Brazil, the price of Bitcoin at the main brokers surpassed the R$176,000 mark, the highest value of the year, according to the Bitcoin Price Index. Livecoins.
Bitcoin starts a new bull run
In an expected market move, the US Federal Reserve’s Federal Open Market Committee (FOMC) has decided to keep the Federal Funds range unchanged, between 5.25% and 5.50%.
The announcement, made on Wednesday afternoon (1), marks a moment of stability after a period of aggressive rate hikes aimed at controlling inflation.
The market reaction was positive after the announcement. At the close of the market, indicators showed an optimistic mood, with the S&P 500 index appreciating 1.1% and the Nasdaq 100, made up of technology companies, posting a significant gain of 1.5%.
In addition, 10-year U.S. Treasury yields fell to 4.73%, down from the nearly 5% seen at the start of the week, reflecting the lower probability the market assigns to future rate hikes.
The FOMC’s decision appears to signal a pause in monetary tightening measures, providing a breather for investors and signaling the Fed’s moderate caution in the face of the complex economic outlook.
According to industry experts, rising interest rates are creating an environment of caution among investors, steering them away from risky assets such as cryptocurrencies. However, a decline or flat position acts as a catalyst for bullish momentum in the cryptocurrency market.
The announcement therefore created enough optimism in the market to push Bitcoin above $35,000.
As the United States continues to double its debt to finance two wars, Bitcoin has become the “safe haven” for investors looking to preserve their purchasing power.
Bitcoin’s price rise is also fueled by the inevitable approval of ETFs by the SEC.
As the U.S. Securities and Exchange Commission reviews nine nine ETF applications, Jerome Powell indicated that the Fed is essentially suspending all rate hikes while it monitors economic and financial conditions.
Cryptocurrencies on the rise
Bitcoin’s rise has also had an impact on other digital assets, with the total market capitalization of other altcoins breaking an 18-month downward trend.
Over the past 24 hours, hundreds of altcoins have seen significant gains, with Solana (+30%) and THORChain (26%) standing out. Both tokens saw double-digit rallies and were able to break through key resistances.
At the time of writing, Ethereum, the second largest cryptocurrency on the market, is trading at $1,835, and a candle closing above $1,900 would serve as confirmation of a breakout.
The price of XRP also saw a 3.3% increase to $0.6. Another cryptocurrency known as Cardano witnessed a jump of 6.42%, with trading volumes increasing by 151.41% over the past 24 hours.
Memecoins also continue to rise, with the price of Dogecoin increases by 2.6% and Shiba Inu increases by 3.5%.
The rise of the major cryptocurrencies contributed to an overall recovery of the market. Total capitalization rose 2.85% from Wednesday (1) to reach $1.3 trillion, with the market fear and greed index at 74, indicating a ‘greed’ sentiment.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
