Bitcoin has had a rough market in the last few days with its price plummeting to mid $9,000. It has however started to come up in the last 24 hours as the day for cutting interest rates by the U.S Federal Reserve approaches. The rate cut which will weaken the U.S Dollar is meant to check the expanding economy, Federal Reserve Chairman Jerome Powell said.
Bitcoin Opportunity For Growth?
The rate cut could provide important leverage for the growth of Bitcoin as the dollar gets weakened. Tom Lee had last weekend mentioned that Bitcoin could go higher as the rate cut approaches. He said the weakening of the U.S dollar would directly strengthen Bitcoin as a viable option for investors and so the crypto community should expect some significant price surge in the coming days.
This has been taken with a pinch of salt, but it appears Tom Lee was right. Bitcoin has been rising, albeit slowly and has finally hit $10,000 again and going beyond. Although some analysts predicted it could be going as low as $7,500, it seems the prediction has been delayed at least till after the rate cut hype or it may not happen at all.
Alts Following Suit
Not only Bitcoin, but altcoins are also making some progress this time. The market shows a strange pattern though, as according to CoinGecko, only the top 7 altcoins are in the greens while BSV and Stellar XLM, the 9th and 10th respectively are still red. This is unlike the usual pattern in which all top 10 cryptocurrencies move in the same direction.
So far, Bitcoin has gained 3.74% in the last 24 hours and is by far the highest gainer. It is trading at $10,036 at the time of writing this article and seems determined to go higher in confirmation of Lee’s position.
As the Fed makes the decision to cut rates and as investors begin to turn to it as a safe haven, we may be seeing more significant growth to the former year high of over $13,000 and even move beyond.
Already, the crypto community is asking if the rate cut would push Bitcoin to Max Keiser’s $100,000 price prediction. The answer, however, remains to be seen in the coming days.