- Bitcoin’s price has risen by more than 1% in the last 24 hours, surpassing $26,900, moving further away from the $26,000 level where the largest digital asset has been trading since mid-August.
- Similar to the Dow Jones Industrial Average and S&P 500 in the stock market, this week’s Federal Reserve decision is also likely to affect crypto prices.
- If the central bank signals it’s ceasing rate hikes and may start lowering them next year, traders returning to risky assets could potentially accelerate recent gains for Bitcoin.
Bitcoin’s price started the week on a positive note, approaching $27,000, which could be a critical level for a rapid recovery.
Bitcoin Price Starts the Week with an Upswing
Bitcoin and other cryptocurrencies saw an increase on Monday as traders seeking to break out of a month-long stagnant range attempted to move digital assets forward in the coming days, which may contain significant macroeconomic catalysts that could be potentially piercing.
Bitcoin’s price has risen by more than 1% in the last 24 hours, surpassing $26,900, moving further away from the $26,000 level where the largest digital asset has been trading since mid-August. Crossing the $27,000 level would be a psychological gain for traders during a period when Bitcoin has historically struggled with low volatility and low trading volume, signaling a slowdown in interest in the crypto space in recent months.
Similar to the Dow Jones Industrial Average and S&P 500 in the stock market, this week’s Federal Reserve decision is also likely to affect crypto prices. Investors are expected to scrutinize the central bank’s language for whether it may want to raise interest rates in November when it takes out its next decision.
The Fed has been inclined to raise borrowing costs since last year to curb inflation, potentially reducing demand for risky bets such as cryptocurrencies, as higher interest rates in safe-haven cash offer better returns than risky bets like cryptocurrencies.
Signs of the central bank ceasing rate hikes and potentially lowering them next year could accelerate recent gains for Bitcoin if traders start returning to risky assets – potentially serving as the catalyst that cryptocurrencies needed to break out.
Altcoins Also Gaining
Beyond Bitcoin, the second-largest cryptocurrency, Ethereum, rose to $1,639 with an increase of less than 1%. Smaller tokens or altcoins like Cardano and Polygon both traded above flat levels. Meme coins were more mixed, with Dogecoin dropping by nearly 1% and Shiba Inu experiencing a decrease of less than 1%.
Additionally, micro investors in Bitcoin (those holding 0.01 BTC or less) set a new record today. On the other hand, addresses holding more than 100 BTC reached their lowest level in the past four months.
