This week, the price of bitcoin rose to its highest level since last summer. The upward trend in the cryptocurrency exchange rate is due to the fact that some investors have bet that the US Federal Reserve will suspend interest rate hikes.
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At the time of writing this note, the price of bitcoin was about $27,566 per coin (data from the CoinDesk platform). Over the past 24 hours, the value of the most popular cryptocurrency in the world has increased by more than 5%. The growth of bitcoin was supported by some other popular cryptocurrencies. For example, the cost of Ethereum at the time of writing was about $1813 per coin (growth by 5.36% per day), Solana has risen in price by more than 10% to $22.39 per coin, and Bitcoin Cash – by 5.43% to $136, 45 per item.
Generally, investors view bitcoin as a high-risk asset due to the high level of volatility in the cryptocurrency. A number of factors contributed to the growth of bitcoin at the end of the week. Thus, more and more investors are betting that the cycle of raising interest rates by the US Federal Reserve can be completed amid financial turmoil after the collapse of two US banks last week.
Image Source: CoinDesk
“Suddenly the question was whether the Fed would continue to raise,” said Christopher Bendiksen, head of crypto research at digital asset management firm CoinShares. He also noted that some traditional investors have become interested in bitcoin amid concerns about possible further turmoil in the banking sector. The attractiveness of bitcoin is enhanced by the fact that it is not pegged to the dollar, so its value may rise again in the near future.
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