Cryptocurrency Bitcoin is recovering to $110,000. The new level of quotations was influenced by: expectations regarding changes in the Fed's interest rates and stabilization in the economic confrontation between Washington and Beijing.
UNN reports with reference to Investing.
Details
Monday, October 20, began with data on the recovery of Bitcoin's high price - today it reached the level of $110,000. It is indicated that the cryptocurrency received support from persistent forecasts that the Federal Reserve will cut interest rates at the end of October, as well as from a broader increase in prices for risky assets.
In addition, an important factor is the realization of a certain calming in the light of the trade war between the US and China. US Treasury Secretary Scott Bessent announced that high-level trade talks with Chinese ministers are planned to continue this week.
Overall cryptocurrency prices rose. Among what should be noted is Bitcoin's recovery on Monday. It is also explained that most altcoins recorded a sharp recovery after recent losses.
Other cryptocurrencies:
- Ether - up 4.1% to $4,057.96;
- XRP rose 4.2% to $2.4510;
- BNB rose 3.6% to $1,130.20;
- Solana rose 3.2%;
- Cardano jumped 5.4%;
- Dogecoin rose 5.6%.
Also, $TRUMP rose 2.2%.
Addition
Previously, among the negative factors that influenced cryptocurrency markets were certain questions regarding the "economic health" of the United States. An important aspect is the shutdown of the United States government, which has been going on for the third week in a row.
Recall
The sharp fall of Bitcoin from a record $126,000 to $103,000 was provoked by the announcement by the administration of US President Donald Trump of a new package of tariffs against Chinese imports. This caused a cascade of liquidations in the cryptocurrency market for a record $19 billion.
Fintech expert and co-founder of Concord Fintech Solutions Olena Sosedka then explained that such a reaction of the crypto market indicates its deep integration into global financial processes.
The cryptocurrency market no longer exists in a vacuum. It is already integrated into the global financial market, and increasingly reacts to the same factors as traditional assets. If investors expect a slowdown in the global economy due to trade restrictions - they reduce positions in everything that has high risk, including crypto
She also noted that the fall was short-term, caused by the "risk-off" effect, and in the short term, Bitcoin could consolidate in the range of $110–125 thousand.