Cryptocurrencies and many other assets rise on expectations that the Federal Reserve will slow the pace at which it raises interest rates as inflation slows.
In the past seven days, the price of bitcoin has risen more than 7%, according to data from crypto exchange Coinbase. Right now, it’s over $18,000.
bitcoin increased in value for nine days in a row. This is the longest period of growth since the start of the covid-19 pandemic, reports Bloomberg. The price of the first cryptocurrency in the world rose almost 10% in January and the one with the second largest token, ether, increased about 17% in the same span. Both fell more than 60% in 2022.
Cryptocurrencies and many other assets are rising on expectations that the Federal Reserve will slow the pace at which it raises interest rates as inflation slows.
On the other hand, bitcoin now remains in the zone of “low realized volatility”, indicates analytics firm Glassnode. “Historically, these periods have preceded explosive market moves (in both directions)with the latest examples from November 2018 and April 2019,” the company says in its newsletter.