- Macroeconomic policies in the U.S. and Japan have triggered bullish moves in Bitcoin.
- Bitcoin gained over 11% in less than one week.
- The Bank of Japan maintained an interest rate of 0.25%.
Macroeconomic policies in the U.S. and Japan have triggered Bitcoin bullish moves. The orange coin’s price jumped this week after interest rate decisions by the Federal Reserve and the Bank of Japan. Since the U.S. Fed’s interest rate cut decision, Bitcoin gained over 11% by the end of the week, pushing the price above $62,000 for the first time in September.
On September 18, the U.S. Federal Reserve lowered its interest rate by 50 basis points, the first cut since the COVID-19 pandemic. This move, aimed at curbing rising inflation, triggered a surge in Bitcoin’s price, with BTC gaining 4.26% last Wednesday.
Two days after the Fed’s decision, the Bank of Japan (BOJ) announced it was maintaining its interest rate at 0.25%. The BOJ’s governor noted the central bank wants to see the effects of global economic uncertainties before making any changes.
Bitcoin Responds with Further Gains
Bitcoin responded to the BOJ’s interest rate decision with more upward movement, adding another 3.5% to its value on September 20. This solidified the newfound bullish momentum that saw the flagship crypto gain over 11% this week.
Overall, crypto analysts see this week’s macroeconomic data as bullish for Bitcoin and the crypto market. Many investors think the Fed’s reduced interest rate encourages speculative investments, as interest rates on safer assets remain unappealing.
Read also : Interest Rate Cut vs. Inflation: The Fed’s Dilemma and Crypto’s Future
Early signals point to the recent development benefitting Bitcoin’s price, with investors feeling more comfortable maintaining or increasing their exposure to risk assets. The recent surge aligns with the growing bullish potential, potentially paving the way for higher price levels, as investors anticipate a crypto market rally in Q4 2024.
Bitcoin was trading at $62,996 at the time of writing after climbing above the 0.618 Fibonacci resistance level on the daily chart, according to TradingView’s data.
Increased bullish momentum could see the BTC retest the $65,000 resistance soon, a break above which would clear the path for a retest of its all-time high above $73,000.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
