2023-10-04 14:33:12
Bitcoin was relatively stable in September this year, and it also delivered one of its strongest performances since 2012 and 2016. Compared to the low point in September, the price of bitcoin rose by roughly 10% by October, and traders are confident that its value will skyrocket once more soon. According to Kaiko’s analysis, bitcoin is on solid footing even in the current interest rate environment. The US has continued to raise interest rates throughout 2022 and into the first half of 2023 to curb inflation. Inflation peaked at 8.2% in September of last year, then decreased continuously, but rose once more to 3.7% in August this year. Several regional banks declared bankruptcy, and capital was diverted to bonds and government securities. In 2022, when the Fed raised interest rates, the price of BTC fell from its 2021 peak, before falling below $16,000 by November. Ideally, however, the Fed plans to keep inflation around the 2% benchmark. With rising prices, there is still a chance that Jerome Powell, the chairman of the central bank, will raise interest rates once more at his next meeting. And this can significantly affect the value of cryptocurrencies, including bitcoin. US Treasuries are considered risk-free and safe because the government is committed to repaying the debt on time and in full. Last August, however, the credit rating agency Fitch Ratings downgraded the sovereign debt rating from “AAA” by one grade to “AA plus”. According to expectations, the national debt will increase in the next three years, and concerns were also expressed due to the deteriorating governance experienced in recent decades.
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