There has been an exciting development in the cryptocurrency world recently; Bitcoin rose to an 18-month high of $38,777. There are a number of fundamental factors behind this impressive increase in value, creating a positive atmosphere in the cryptocurrency market.
First of all, experienced investors’ confidence and optimistic views on Bitcoin play a decisive role. Prominent billionaire and crypto enthusiast Mike Novogratz remains optimistic about the future of cryptocurrency. One key catalyst Novogratz highlighted is the expected approval of the spot Bitcoin ETF. If this ETF is approved, it could increase institutional investors’ interest in the market and have a positive impact on the value of Bitcoin.
Moreover, Novogratz is not the only person who thinks this way. Novogratz’s optimism is shared by many who see institutional adoption as an important step towards Bitcoin’s mainstream acceptance.
Economic factors are effective
In addition, the economic landscape in the United States also appears as a factor affecting the rise of Bitcoin. Bond investors expect the Federal Reserve to cut interest rates through the first half of 2024 amid signs that U.S. economic growth is slowing and inflation is easing. This may mean a decrease in confidence in traditional investment instruments and an increase in the tendency to turn to alternative assets. Digital assets such as Bitcoin may also be positively affected by this change.
As predicted by ING Economics, the Federal Reserve (Fed) is expected to cut interest rates six times in 2024. The prospect of lower interest rates is contributing to the recent price rise by increasing the appeal of non-interest-bearing assets such as Bitcoin.
In addition to these, most It now looks possible for bulls to reach the $40,000 mark after the major cryptocurrency hit an 18-month high.
However, investors should always carefully evaluate market conditions and understand the risks. The cryptocurrency market can be volatile and subject to sudden price fluctuations. Therefore, investors should follow a careful strategy and follow current developments closely. Bitcoin’s success can be considered a sign of mainstream acceptance of cryptocurrencies, but every investment decision should be carefully considered.
You can follow the current price movement here.