After forging new heights this year throughout the first six months of this year, Bitcoin went through incredibly tough times throughout the month of July. In July, the price fluctuated violently as a range of extraneous factors did not allow the token to move beyond a certain level, while the price plunged significantly post recoveries as well.
However, Bitcoin managed to get off to a good start this month and has managed to go past the psychologically important $10,000 market on the back of positive news with regards to the crypto space.
Rise Amid Bearish Sentiment
Throughout the course of July, a wide range of factors affected the price of the token, starting from the doubts over Facebook’s (NASDAQ:FB) Libra and comments about Bitcoin from some of the most powerful people in the United States.
Experts believe that the rate cut announced by the United States Federal Reserve is one of the biggest reasons behind the surge in the price of Bitcoin. It is interesting to note that over the past three days, the cryptocurrency has surged by as much as 15% from a low of $9,100. When a rate cut takes place, money is more easily available to investors, and experts believe some of that money has flowed into Bitcoin. Crypto market analysts believe that the price movement in Bitcoin was directly related to the rate.
A market analyst at eTORO said that plenty of important voices in the crypto community have been saying that a stimulus from the Federal Reserve was going to have a positive effect on the price of Bitcoin. On the day the rate cut was announced, the price movement of Bitcoin played out in a way that confirmed those assertions. Just before the rate cut was to be announced, there was a downturn in the price of Bitcoin, and as soon as it had been confirmed, the price started climbing. The price action over the course of the weekend will be watched keenly by most crypto investors.
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