Bitcoin rises on the back of important economic data and decisions of the US Federal Reserve
Kyiv • UNN
Bitcoin rose to $58,999.7 amid expectations of US economic data and a possible rate cut by the Federal Reserve. Historically, September is a difficult month for cryptocurrencies, with an average negative return of 5.36%.
Bitcoin is showing growth amid expectations of important economic data and possible decisions of the US Federal Reserve on interest rates, UNN reports with reference to Investing.
Bitcoin rose by 2.5% to reach $58,999.7 after low trading volumes on Monday, when the US celebrated Labor Day.
The world's largest cryptocurrency lost more than 7% of its value last week and had been in a downward trend for most of the previous month, partly due to fears of tokenization and massive sales, including from the former Mt Gox exchange. In addition, fears of a recession in the United States led to significant losses in global financial markets in early August, including crypto markets.
Markets are now focusing on key economic data due out this week, including the US nonfarm payrolls report due on Friday.
The US Federal Reserve is expected to cut interest rates later this month, and employment data could influence the extent of that cut, which is likely to affect overall risk sentiment. A rate cut could be beneficial for cryptocurrencies as it increases the liquidity available for speculative trading.
According to CME's Fedwatch tool, traders estimate the probability of a 25 basis point rate cut in September at almost 100%.
Despite the fact that bitcoin showed growth earlier this week, historically, September is a difficult month for it. Data shows that bitcoin has had a negative return in nine of the last thirteen September months, making it one of the worst months for the cryptocurrency with an average negative return of 5.36%.
In the cryptocurrency market, Ether (ETH/USD) rose by 1.2% to $2,499.99, despite falling by more than 20% in August, which was the worst month for the token since January 2022. Solana and XRP added 4.38% and 2.89%, respectively, while Cardano gained 0.2%.
Recall
Recently, the price of bitcoin plummetedas Mt Gox appeared to have mobilized tokens worth about $2 billion, raising concerns about new distributions from the defunct crypto exchange.
