Bitcoin jump to the highest level in the last 19 months; What was the cause?

Bitcoin price reached its highest level in 19 months yesterday. The statements of the American central bank about the increase in the possibility of lowering the interest rate in the future are considered to be among the main reasons for the recent upward trend.

According to CoinDesk, the price of Bitcoin crossed $40,000 yesterday for the first time since May 2022. At the same time, Ethereum has passed the $2,200 resistance and the rest of the digital currencies have also experienced an upward jump.

Bitcoin, which fluctuated below the $40,000 level in recent days, is now trading around $41,450 and has experienced a 5.16% growth in the last 24 hours. The current price of Ethereum is $2,254 and its 24-hour return is more than 4.4%. The rest of the market currencies have also experienced fluctuations in the same dimensions.

After Bitcoin fell below $40,000 in April 2022 (April 1401), this digital currency managed to recover this level under the influence of two key factors; Statements by the US Federal Reserve about the possibility of interest rate cuts in the country, as well as increasing hopes for the approval of the first Bitcoin cash ETF in the United States.

In addition, on-chain data shows that between November 17 and December 1 (November 26 to December 10), 37,000 bitcoins (equivalent to $1.5 billion at today's prices) were withdrawn from digital currency exchanges.

The price of Bitcoin exceeds 41,000 dollars while the price of gold per ounce in the world markets has also reached its historical record of 2,146 dollars.

Lucy Hu, senior analyst at Metalpha, recently wrote in a note about the current state of the market:

The market now largely expects interest rates to fall next year, and investors are increasingly bullish on requests to launch bitcoin cash ETFs by major US companies. This move is the official statement of the start of an uptrend, and we are likely to experience more bounces over the coming weeks.

Jerome Powell, the head of the US central bank, recently announced that interest rates are now well within the “restrictive zone”, and this speech strengthened the impression that the cycle of adopting contractionary monetary policies has reached its peak; An issue that puts downward pressure on US Treasury yields.

Amberdata, a data provider company, wrote in its newsletter on Sunday:

As Treasury yields fall, digital currencies are growing nicely alongside gold. The Bitcoin market is eager to jump to higher levels and even without the stimulus of news about Bitcoin Cash ETFs, there is still optimism in the market.