After having one of the worst months in recent history, Bitcoin was able to take a short breath yesterday, when a sudden rally made the cryptocurrency go up nearly 8% in a matter of hours.
After falling below US$ 18.500 on Tuesday, Bitcoin saw a significant rise today. BTC is trading at US$ 20.704 this morning, up 7.9% over the previous day.
The largest cryptocurrency by market capitalization is attempting to recover after the several hits taken from the United States Federal Reseve policy announcements in August.
In its fight against inflation, the Fed announced several interest rates program that dramatically affected the cryptocurrency’s market value.
The sudden growth in value could be a good indication that investors are beginning to anticipate a more moderated inflation and a slowing of the rate of increase in interest rates in 2023.
One of the reasons that could justify this sudden rally was reported on CryptoCoinOpps last week.
The United States Labor Department reported that the nation total job growth had slowed down in August, meaning that this data can be interpreted as a sign that the Federal Reserve’s many initiatives involving raising interest rates in the country in an effort to curb inflation after the epidemic are beginning to bear fruit.
Despite the good news for Bitcoin owners, September can still be a challenging month for the cryptocurrency. The stock market, which bitcoin and the cryptocurrency market have been closely tracking in recent months, is still being restrained by economic problems in the United States and overseas.
Also, there is no guarantee that the United States Federal Reserve will halt its policies regarding the raise of interest rates in order to tame the Nation’s inflation. Despite the several indications that the Fed policies are already bearing fruit, nothing is to say that the Federal Reserve will not continue to raise interest rates in the upcoming months.
Ethereum Also Went Up
The second largest cryptocurrency by market capitalization also followed Bitcoin’s growing rate in the last day. Ethereum (ETH), is up 4,8% today, trading close to US$ 1,700. The digital asset continues to respond to trader speculation over Merge, an update that is expected to be completed by the upcoming Friday.