The cryptocurrency market is gaining momentum once again. The biggest cryptocurrency, Bitcoin, has once again made a huge jump in 2023. After 10 months, the price of Bitcoin (Bitcoin Price) has once again crossed 30 thousand dollars. Crypto market experts say that the number of people investing in Bitcoin has increased due to the increase in interest rates by the US Federal Reserve and the US banking sector crisis. Since the beginning of 2023 till now, the rate of Bitcoin has jumped 80 per cent. On January 1, 2023, the price of one bitcoin was $ 16,500, which increased to $ 30,042 on Wednesday, April 12 (Bitcoin Price Today).
The price of this world’s largest cryptocurrency has increased by about 35.86 per cent in the last month. Its price has increased by 6.81 per cent in the last week. During this period, the rate of Dogecoin Rate, the second-largest cryptocurrency, has fallen by 14 per cent. While Ethereum Price has climbed 1 per cent in the last seven days, there has not been much fluctuation in the price of Tether Rate.
That’s why Bitcoin is increasing.
If you believe in crypto-experts behind the rise in Bitcoin, there is a big hand in the possibility of the US Federal Reserve Bank stopping the increase in interest rates soon. He says that by stopping the increase in interest rates and reducing it further, investment in other high-risk assets, including cryptocurrencies, can increase even further. The condition of America’s economy is not looking good. Hiring has come down. 2.36 lakh new people got jobs in the US during March. At the same time, the monthly average of 6 months was 3.34 lakhs. The Federal Reserve may stop the process of increasing interest rates due to the decrease in the expected hiring activity and cash crunch in front of many banks.
Banking crisis
The recent banking crisis in America and Europe has also attracted investors towards cryptocurrencies. Enthusiasts of digital currency believe that decentralising the financial system is very important to avoid such a crisis, where people have complete control over their money without regulating banks. Apart from this, the approaching time of Bitcoin’s halving event is also believed to be one of the reasons for the rise in Bitcoin. It is expected to happen in May 2024.