The post Bitcoin Jumps to a One-Month High of $65,661, While Japan Yen Falls Badly appeared first on Coinpedia Fintech News
Bitcoin, the largest cryptocurrency by market cap, has surged to a one-month high of $64,661, igniting excitement across the market. This surge followed the Federal Reserve’s recent decision to cut interest rates, providing a boost to the market. At the same time, the Japanese yen continued to weaken, struggling due to recent economic policies.
Bitcoin’s Rally Gains Momentum
Bitcoin is up 8.8% this week, heading for its second positive week in a row. This came shortly after the Federal Reserve announced a large 50 basis point interest rate cut. which could lead to more money flowing into assets like crypto.
Chris Weston, a leading researcher at Pepperstone, noted that the current economic conditions are ideal for Bitcoin’s upward momentum. He pointed out that once Bitcoin starts rising, fear of missing out (FOMO) often kicks in, prompting more investors to buy, which drives prices higher.
While, some analysts believe this rate cut could signal a larger trend, with expectations that rates may drop by another 125 basis points by year-end. However, Fed Chair Jerome Powell’s comments about keeping the Fed’s neutral rate higher than in the past have tempered further gains in the crypto markets.
Ether, another major cryptocurrency, also benefited from this rally, rising 3% to $2,660.30—its highest price since late August.
Yen Weakens Further
In contrast to the rising crypto market, the Japanese yen continued to drop. After hitting its highest level in two weeks, the yen stood at 144.16 against the dollar on Monday, extending its decline from last week.
This decline started when the Bank of Japan (BOJ) decided to keep its interest rates unchanged, showing no urgency to raise them. However, this decision came after the U.S. Federal Reserve’s rate cut, contributing to the yen’s current slide.
Japan’s financial markets were closed for Autumnal Equinox Day, but global investors remained focused on the prospects of additional rate cuts by the Fed. These cuts are anticipated to benefit equities and commodity-based currencies, as seen in the Australian dollar’s rise of 0.4% to $0.68355.
What Next?
The Fed’s actions seem to have calmed fears of a U.S. recession. Analysts at Goldman Sachs expect the U.S. dollar to rise slightly in the short term but may weaken again in the next six to twelve months.
As Bitcoin continues its upward trend, the question remains whether it will sustain this growth or if the yen’s struggle will impact global markets further.