Why Bitcoin Price is Up Today? Whale Buying, Fed Report & More!
Qadir AK24 Oct 20242 min read
After hinting at a potential market reversal, Bitcoin (BTC) climbed back above $67,000 earlier today, setting the stage for some significant market events in the coming weeks. The leading cryptocurrency dipped to a low of around $65,000 within 24 hours before rising to about $67,538 during the early European trading session on Thursday.
As Bitcoin bounced back, the altcoin market, led by Solana (SOL), saw gains too. This price surge resulted in more than $273 million being liquidated in the crypto-leveraged market, with long traders experiencing most of the losses.
With so much at stake, investors and traders are closely watching the crypto market. Here’s what you should know.
Top Factors Behind the Bitcoin Price Rebound Today
Ongoing Economic Shift
Bitcoin’s recent rebound has been influenced by several key factors, particularly institutional adoption and macroeconomic trends. A major development occurred on Wednesday when the Bank of Canada made a bold move to lower its benchmark interest rate by half a percentage point, bringing it to 3.75%. This decision came as inflation showed signs of easing.
Moreover, the Beige Book, a Federal Reserve report that reviews economic conditions across 12 regions, indicated a stable economy with slowing inflation. This report fueled speculation about a possible rate cut in early November, following the U.S. 2024 elections.
“The Beige book comments got the markets’ attention and helped to solidify the belief that another 25 bps cut is coming in November and a high chance of one in December. The turn in the dollar was across the board afterward,” ForexLive noted in a blog post.
Rising Demand from Whale Investors – The Perfect Safe Haven?
Despite a stronger U.S. dollar and a rally in the precious metals market, Bitcoin continues to attract investors looking for a hedge against economic risks. Its appeal as a long-term store of value remains strong, even as macroeconomic conditions change.
Adding to the momentum, BlackRock continued its aggressive Bitcoin purchases on Wednesday, buying coins worth over $317 million. This accumulation trend has contributed to a significant drop in the amount of Bitcoin held on centralized exchanges, as more investors choose to store their assets in private wallets.
Altcoins Join Bitcoin’s Rally
The altcoin market followed Bitcoin’s upward movement, with Solana (SOL) leading the way. The simultaneous gains across multiple cryptocurrencies reflect renewed optimism in the crypto market.
Bitcoin’s steady rise and recent gains show growing confidence in the crypto space, fueled by a mix of institutional interest and macroeconomic factors. As the end of the year approaches, high-impact events could shape the market’s direction, keeping investors on their toes.
Is the Bitcoin bull run back? We’re keeping our fingers crossed.
