Bitcoin, the largest cryptocurrency by market value, surged past $62,000 after a series of key events unfolded in the financial and crypto markets. The U.S. Federal Reserve’s recent decision to cut interest rates, combined with other major developments, has sparked a strong rally in Bitcoin’s price. Analysts are now watching for Bitcoin to break past the $65,000 mark, which could lead to further gains.
U.S. Federal Reserve Cuts Interest Rates
On September 18, the U.S. Federal Reserve cut its benchmark interest rate by 50 basis points, the first such reduction in over four years. This move signals the start of an easing cycle, aimed at boosting the economy ahead of the November presidential election.
The Fed’s decision has had a positive effect on Bitcoin, which saw a 4% rise in value following the announcement.
The Fed’s projections also suggest that more rate cuts are likely, which could lower interest rates to 4.4% by the end of the year. This outlook has further strengthened the cryptocurrency market as investors seek assets like Bitcoin that often perform well during periods of lower interest rates.
Trump’s Bitcoin Burger Purchase
Former U.S. President Donald Trump made news recently when he used Bitcoin to buy burgers at a bar in New York City. The $998.70 transaction, completed through the Strike app on Bitcoin’s Lightning Network, marks the first time a former U.S. president has used cryptocurrency for a purchase.
This event is seen as part of Trump’s evolving approach to digital assets, which he has now embraced as a campaign strategy for the 2024 election.
MicroStrategy Buys More Bitcoin
MicroStrategy, a company led by Bitcoin advocate Michael Saylor, added another $1.1 billion worth of Bitcoin to its holdings between August and September. The company’s total Bitcoin holdings now amount to $9.5 billion, reinforcing its position as the largest corporate holder of the cryptocurrency.
MicroStrategy also announced plans to raise $700 million through a private bond offering, with the goal of buying even more Bitcoin.
Key Levels for Bitcoin’s Next Move
As Bitcoin crosses $62,000, market analysts are watching for the next crucial level. According to crypto analyst Jelle, Bitcoin must break past $65,000 to maintain its bullish momentum.
If Bitcoin surpasses this resistance level, it could push the cryptocurrency toward new all-time highs, marking a significant upward trend.
