At the auction on Wednesday, the value of the first cryptocurrency soared by 5.8% and closed the trading session at $39,800 – the highest level in the last two months. At the moment, the price of the main virtual asset even exceeded $40,000. The day before, the value of digital gold strengthened in parallel with the growth of other risky assets, in particular key US stock indices.
So, the NASDAQ Composite index rose by more than 3% on Wednesday, and the S&P 500 – by 2.9%. By the way, in the past month, the NASDAQ Composite indicator fell by 12.7%, which was the highest level of decline since 2008.
At one point the price of the BTC has significantly adjusted, now the coin is trading at $37,069.
The main reason for the sharp increase in bitcoin the day before was the announcement of the results of the US Federal Reserve meeting. The central bank has decided to raise the key rate by 50 basis points, now its range is 0.75% -1% per annum. By the way, there has not been an increase in the indicator by 50 basis points at the same time since 2000.
The day before, Fed Chairman Jerome Powell also stressed that in the near future the central bank will permanently raise the interest rate, but an increase of 75 basis points at once is not actively discussed by the central bank. Such a statement by the head of the Fed coincides with the forecasts of experts. Earlier, Bloomberg analysts suggested that the current increase in the key rate is far from the last. According to the consensus forecast of the news agency, the rate will increase by another 0.5% in June. Later, the Fed will reduce the pace to 25 basis points, and by the end of this year the estimated rate will be 2.25%-2.5%.
Earlier in March, the US central bank raised the rate by 25 basis points. After the previous increase, the value of bitcoin increased by 17% within two weeks. If the March story repeats, in the near future the price of the first cryptocurrency may reach the highest levels since the beginning of April – the mark of $47,000.
The positive mood of the main digital asset was eagerly picked up by the leading altcoins. Thus, the price of the Ethereum coin increased by 6.4%, Binance Coin gained 5.1%, and Cardano - 13.9%.
According to CoinGecko, the world's largest virtual asset data aggregator, over the past 24 hours, the total capitalization of the crypto market has grown by 6.2% to $1.90 trillion.
According to the latest weekly report from CoinShares, over the past seven days, institutional investors withdrew about $120 million from cryptocurrency funds. At the same time, bitcoin funds reported the highest outflow of capital since the summer of the past year ($133 million). Experts have recorded a tangible outflow of funds for the fourth consecutive week.
Recall that in April the cost of the first cryptocurrency sank by 16.2% - the lowest figure for this month since 2011 against the backdrop of negative events in world markets, as well as the conflict between Russia and Ukraine.
According to the results of the first quarter of 2022, the cost of digital gold lost 1.5%. At the same time, the past March was a rather favorable period for the asset, as a result of which it reported an increase of 10%, having strengthened for the second consecutive month.
Bitcoin lost more than 16% in January, and its price rose by 12% in February.
The BTC updated its historical record in November 2021, soaring above $69,000. Since then, the cryptocurrency has moved into a steady decline.
According to the results of the past year, the cost of bitcoin increased 1.6 times - to $46,200 from $28,900.
