There is never a dull moment in the crypto market. One moment we are experiencing declines and investors fear the worst, the next moment we see a sharp rise and the future seems bright again.
At the moment, we are on the positive side of the spectrum, with the entire market turning green. For example, Bitcoin (BTC) rose by 2.1% in the past 24 hours. Projects like Ethereum (ETH) and Solana (SOL) saw even bigger increases of 4.7% and 8.7% respectively.
The big question that investors are now wondering: Why is the crypto market rising today? In this article, we will provide a clear explanation.
Japanese interest rates remain stable
One of the main reasons seems to be the economic development in both Japan and America. The Bank of Japan has decided not to raise interest rates. In August, the country surprised with a historic rate hike, which caused a short market crash worldwide. The absence of a further increase now reassures investors.
Lowering interest rates in America
There are also positive developments in the interest rates in the United States. The Federal Reserve (Fed), the country’s central bank, has decided to lower interest rates not by 0.25%, but by 0.50%. This unexpected, major step by the Fed encourages investors to borrow more and invest in speculative assets such as crypto and tech stocks, which benefit directly from this.
Spike in Unresolved Bitcoin Futures Contracts
Additionally, we are seeing a spike in the number of unresolved Bitcoin futures contracts. This means that there are currently a record number of futures contracts in the market that have not yet been settled or closed. This indicates a significant amount of capital in the market, which raises expectations for prices to continue to rise.
Source: https://newsbit.nl/waarom-stijgt-de-cryptomarkt-vandaag/
