Bitcoin rose in price by 10% thanks to central banks

Bitcoin continues to grow steadily, strengthening for the fourth day in a row. Since the beginning of the week, the BTC/USD exchange rate has increased by 10%, which was facilitated by the decisions of major central banks.

The US Federal Reserve System cut the rate by 50 basis points, which led to an update of record highs on Wall Street. In addition, the Bank of Japan maintained its previous policy without raising the cost of lending, and the Bank of England left rates unchanged, which coincided with market expectations.

Traders note that the macroeconomic data highlights optimism about risky assets, including bitcoin, in the coming months. According to QCP Capital, the inversion of the spread between the yields of 2- and 10-year US Treasury bonds (which has indicated the risk of recession since July 2022) decreased to +8 basis points, which is a sign of positive market sentiment and interest in risky assets.

It is expected that the upcoming volatility in the cryptocurrency market will cause an influx of new funds. Since the beginning of the week, open interest in bitcoin has increased by almost $5 billion, which confirms the growth of bets on the asset and the preference of traders for long positions.