There are many reasons for bitcoin to rise
2024-09-23

With Bitcoin breaking through the $64,000 mark on Monday morning, and up 10% over the past week, there are a number of catalysts that are driving the momentum.

From last week's Fed rate cut and increased demand for bitcoin ETFs to bipartisan political support, the list goes on. Although for different reasons, analysts seem to agree that they will drive oil prices higher and set the stage for further gains in the coming months.

Bitcoin (BTC) was trading at $63,520, up 1.2 percent in early European trading hours and up about 10 percent over the past week. According to data from CoinGecko, Ethereum (ETH) was trading up 2.4 percent at $2,650, up about 15 percent in the last seven days.

One of the main drivers behind Bitcoin's rise was the Federal Reserve's recent decision to cut interest rates by 50 basis points, a decision that weakened the dollar and made Bitcoin an attractive hedge against inflation and fiscal uncertainty. With the U.S. fiscal debt reaching $35 trillion and increasing by $1 trillion every 100 days, Bitcoin is increasingly seen as a gold-like store of value.

Let's not forget that bitcoin has surged 45% year-to-date, outpacing gold's 27% gain. I'll have more analysis for you later...