Bitcoin is worth around $42,000 today, with BTC price rising 12% over the past week following Jerome Powell’s interest rate guidance.
The price of Bitcoin (BTC) is fluctuating around $42,000 on Dec.
Bitcoin, gold price booms on rate cut hopes
BTC’s price kickstarted the new week by climbing above $41,400 for the first time in 17 months. In doing so, the cryptocurrency followed gains in the gold market, its traditional safe-haven rival whose price rose to a new record-high on Dec.
Rate-cut expectations may have served as the common denominator for Bitcoin and gold’s price rallies this week. Notably, investors have become more confident about a Federal Reserve pivot on interest rates after Jerome Powell’s speech on Dec.
The Fed chairman said they have raised interest rates high enough to fully combat inflation.
For instance, as of Dec.
Rate cuts have proven to be bullish for Bitcoin in recent years.
BTC’s price is also gaining momentum amid increasing chances that the first spot Bitcoin exchange-traded fund (ETF) in the U.S. will be approved by January 2024.
15% BTC price pullback in play
Bitcoin’s price rally in recent months has created a broad divergence with its daily relative strength index (RSI), indicating that its buying momentum has been slowing down at local price highs.