This week, bitcoin price surged to its highest level since last summer. The uptrend in the cryptocurrency price comes as some investors have been betting that the US Federal Reserve will suspend interest rate hikes.
At the time of writing, the price of bitcoin was around $27,566 per coin (data from CoinDesk platform). In the last 24 hours, the value of the world’s most popular cryptocurrency has increased by more than 5%. Bitcoin’s growth has been aided by a few other popular cryptocurrencies. For example, Ethereum is costing around $1813 per coin at the time of writing (growing 5.36% per day), Solana is up more than 10% in price to $22.39 per coin and Bitcoin Cash is up 5 .43% to $136.45 per unit.
In general, investors view Bitcoin as a high-risk investment due to the high volatility of the cryptocurrency. A number of factors contributed to Bitcoin’s growth at the end of the week. More and more investors are betting that the US Federal Reserve’s rate hike cycle can be completed in the financial turmoil following the collapse of two US banks last week.
“Suddenly the question arose whether the Fed would hike further”, said Christopher Bendiksen, head of cryptocurrency research at digital asset management firm CoinShares. He also noted that some traditional investors have become interested in bitcoin amid concerns about possible further turmoil in the banking sector. Bitcoin’s appeal is enhanced by the fact that it is not tied to the dollar, so its value could rise again in the near future.