couple of months. The rally started on Oct 16 after the Securities and Exchange Commission (SEC) decided not to appeal its loss against Grayscale Investments in the D.C. Circuit court.
This rekindled optimism that the approval of a bitcoin ETF may be on the horizon. This sent Bitcoin and other major cryptocurrencies like Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) on a rally.
Bitcoin Rebounding Again
This week has particularly been good for Bitcoin. Following the SEC decision, Bitcoin’s price surpassed the $28,000 mark and was trading above $28,500 on Oct 19. Apart from the SEC’s decision in favor of Bitcoin, Members of Congress are working on new legislation to introduce stricter anti-money laundering regulations for cryptocurrencies.
This move comes in response to a Wall Street Journal report last week, following the surprise attack on Israel earlier this month. The report stated that Hamas and the Palestinian Islamic Jihad had received up to $134 million in cryptocurrencies since 2021.
Bitcoin made a solid turnaround this year after a dull 2022. The cryptocurrency was on a rally till July, when its price hit a 52-week-high of $31,500. However, the price has since fallen and hit a low of $24, 500 in late August and September.
Prices of cryptocurrencies have since been rangebound, but a rebound started again last month after the Fed kept its benchmark policy rate unaltered in its September FOMC meeting to its current range of 5.25-5.25%.
A higher market interest rate has a negative impact on high-growth sectors such as technology and cryptocurrencies. The Fed’s monetary tightening campaign has also raised worries that the economy might slip into a recession.
However, the Fed has hinted at going for one more 25-basis point hike this year before going for two rate cuts in 2024. Cryptocurrencies are making an attempt to recover from their recent lows, with investors expressing more positive sentiments. This renewed optimism follows the dovish comments from several Federal Reserve officials.
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