The price of Bitcoin (BTC) has risen to $38,707, marking an 18-month high, following a 2.5% gain.
The value of cryptocurrencies has recently increased, and various major variables, such as shifting economic conditions and the upbeat opinions of prominent investors, are to blame.
Institutional demand is (almost) here
As of right moment, the leading cryptocurrency has increased by almost 130% year over year. Well-known businessman and cryptocurrency enthusiast Mike Novogratz is still optimistic about the future of bitcoin. He names the anticipated approval of a spot Bitcoin ETF as one of the primary triggers.
He thinks the price of Bitcoin might rise dramatically if big financial firms like Fidelity and BlackRock promote the cryptocurrency.
Many in the cryptocurrency industry share Novogratz’s confidence, viewing institutional adoption as a critical first step towards Bitcoin’s mainstream acceptance.
Economic factors at play
The changing economic environment, especially in the US, is a major reason driving Bitcoin’s growth.
Bond investors are growing more and more confident that the Federal Reserve would drop interest rates by the first half of 2024 in reaction to indications that inflation and U.S. economic growth are weakening.
ING Economics projects that the Federal Reserve will lower interest rates six times in 2024. This prediction is predicated on declining consumer expenditure, a cooling employment market, and lowering inflation.
Bitcoin’s recent price boom can be attributed to the expectation of reduced interest rates, which tends to increase the attraction of non-interest bearing assets like Bitcoin.
