Bitcoin Holding onto Gains after Bullish Turn
Bitcoin is up today and still looking bullish after it benefitted from the recent interest rate cuts issued by the US central bank.
Bitcoin (BTC) has gained some ground in the fight toward a new high after it surged past $63K on Thursday and then retained that progress through Friday morning.
Now valued at $63,432 (BTC/USD) per bitcoin, the cryptocurrency token is showing signs of stability in a fragile and volatile market. We do not expect the coin to stay at this price point for long, and if there is further positive economic news, the coin could shoot much higher.
Working in Bitcoin’s favor is the interest rate cut issued by the US central bank, which dropped 50 basis points and lowered the interest rate for the first time since 2020. There may be further interest rate cuts next year to bring the rate down by an entire percentage point, speculates industry analysts.
Also factoring into the positive Bitcoin movement is the recent unemployment claims news, which showed that unemployment was down to its lowest point in four months. Keep in mind that when Bitcoin slid drastically in recent months and settled into a $58-60K hover, that was due to a negative jobs report.
Significant Progress Being Made
It is important that Bitcoin has been able to hold onto its gains so far during this bullish surge. Over the past few months, Bitcoin has had difficulty in retaining any gains it makes. A climb from $58K to $64K in late August ended very quickly with the coin falling back to $54K within a couple of days.
We may not see a repeat of that kind of action here since there are multiple positive factors at work in favor of Bitcoin. With the economy recovering and inflation decreasing significantly over the past few months, Bitcoin may be ready to set a new record high and push toward $80K for the first time. We fully anticipate a new record high for the coin in the next month or so, and investors need to be ready for that.
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