Is Bitcoin a Good Investment As Its Price Is Surging.

Is Bitcoin a Good Investment As Its Price Is Surging. Again.

19 September 2023

Bitcoin and other cryptocurrencies climbed on Monday as traders sought to push digital assets out of a zone where they had been stuck for the last month, providing an answer to the question, “Is Bitcoin a good investment?”

In addition, a crucial macroeconomic event might alter the needle in the coming days.

Bitcoin’s price has risen 3% in the last 24 hours to above $27,250, surpassing $26,000, the highest level at which the largest digital currency has traded since mid-August. The move represents a victory for Bitcoin, which has been plagued by record-low volatility and trade volumes. Both are indicators of dwindling interest in the cryptocurrency market.

After Bitcoin experienced the lowest volatility levels ever recorded on a 30-day basis during the first two weeks of August, Matteo Greco, an analyst at the digital asset firm Fineqia, predicts that the market will experience increased volatility once more with the end of the summer and the restart of regular trading activity.

In the perpetual futures market, the most liquid market in cryptocurrency, traders are rushing into optimistic bets on Bitcoin. According to Coinglass statistics, open interest – money locked up in active derivatives contracts — on Binance, which boasts the world’s largest Bitcoin futures market, has risen 14% in the last 24 hours to more than $2.6 billion, with positions disproportionately skewing bullish.

More generally, the approaching Federal Reserve decision this week, like the Dow Jones Industrial Average and S&P 500 in the stock market, is expected to influence crypto values this week.

When the Fed makes its next decision on Wednesday, it is largely anticipated to keep interest rates unchanged, with investors looking for clues from the central bank on whether another rate rise is possible in November.

Borrowing costs have climbed to a generational high since last year as the Fed worked to control inflation, putting substantial pressure on cryptos and equities alike because greater returns on risk-free cash tend to reduce demand for riskier bets like Bitcoin.

Signs that the Fed is done raising rates and may start decreasing them next year have the potential to accelerate recent gains for Bitcoin if traders start flooding back into riskier assets — and it might be the impetus cryptos need to get out of their rut.

Is Bitcoin a good investment?” Several investors have lately voiced this topic. And we believe you now have an answer.

Beyond Bitcoin, Ether, the second-largest cryptocurrency, gained 2% to $1,650. Smaller tokens, or altcoins, performed well, with Cardano and Polygon trading nearly 2% higher. Dogecoin and Shiba Inu gained less than 1%, respectively, in Memes Coins.

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