Bitcoin has surpassed the $38,000 milestone, marking a resurgence driven by expectations of a change in policy by the U.S. Federal Reserve. On Tuesday, the cryptocurrency briefly reached $38,264, its highest level in 18 months, reflecting investor optimism toward higher-risk assets.
Having experienced a substantial dip in 2022, Bitcoin has rebounded impressively this year, boasting a gain of approximately 130%. The recent surge is closely tied to speculations about the Federal Reserve considering interest rate cuts amid a slowdown in inflation.
More rate cuts?
Recent statements from Federal Reserve Governor Christopher Waller hint at the possibility of a rate cut if the current inflationary trend persists. This adjustment in monetary policy has heightened investor interest in cryptocurrencies, contributing to Bitcoin’s notable recovery.
Renowned market analyst Michael Safai of Dexterity Capital interprets this as a potential precursor to a forthcoming bullish trend in the crypto markets.
More delays from the SEC
Despite the U.S. Securities and Exchange Commission (SEC) postponing its decisions on the Hashdex and Franklin Bitcoin ETFs, Bitcoin’s rally remains unaffected. The SEC’s unexpected early decision on Franklin, ahead of the scheduled January 1 date, has been noted by ETF expert James Seyffart.