On Friday, the #BTCUSD bitcoin exchange rate rose about 8% and briefly surpassed the $65,000 per coin mark. A specific macroeconomic event was behind the rally. Recent interest rate news has demonstrated the growing influence of macroeconomic factors on the new crypto asset class.
Powell, chairman of the U.S. Federal Reserve, said at the annual meeting of central bankers in Jackson Hole that interest rates are poised to fall. Changes in borrowing costs are affecting capital flows in the cryptocurrency space, which is filled with riskier assets.
It appears that the wider adoption and continued liquidity of the cryptocurrency market depends on the extent of its correlation with traditional assets. The more Wall Street and conventional traders come to it through spot bitcoin ETF funds and other market entries, the more chances it has for price appreciation and sustained growth
Comments