The cryptocurrency market demonstrated confident growth last week, despite some volatility. Bitcoin traded in the range from $57,493 to $64,133, trading on Saturday at $62,979, which corresponds to a weekly increase of 6.51%. Ethereum (ETH) also shows positive dynamics, having risen in price by 9.93% to $2,545.
The week began with a slight decline in the Bitcoin rate amid news of an assassination attempt on Donald Trump. This event caused alarm among investors and led to a temporary drop in the price to $57,493. However, on Tuesday, the market began to recover, which was facilitated by positive economic data and expectations of easing the monetary policy of the US Federal Reserve. The key event of the week was the meeting of the US Federal Reserve, which took place on September 18. The Federal Reserve System has decided to cut its key rate by 50 basis points, which exceeded the expectations of many experts. This decision provided significant support to the cryptocurrency market, as lower interest rates usually stimulate investment in risky assets. After the announcement of the Fed’s decision, Bitcoin demonstrated confident growth, breaking the psychologically important level of $60,000. The positive mood was also facilitated by the US stock indices reaching historical highs. The S&P 500 index exceeded the 5,700 point mark for the first time in history, and the Dow Jones exceeded the 42,000 point level.
On Friday, September 20, Bitcoin’s growth slowed down slightly due to a correction in the US stock markets after the recent rally. Nevertheless, the week as a whole turned out to be successful for the cryptocurrency market. Additional support was provided by the Bank of Japan’s decision to keep interest rates at the same level, which led to a weakening of the yen and an increase in the attractiveness of risky assets. However, there were also potential factors of pressure on the market. Large transfers of bitcoins from early miners’ wallets were recorded, and there is a general decrease in miners’ reserves, which may indicate their willingness to sell accumulated assets to cover operating expenses. Perhaps the growth of the bitcoin rate will slow down sales.
On Saturday, September 21, bitcoin was trading at $63,027. Technical analysis indicates a new formation of an upward trend. A breakout of $60,600 and $61,800 opened the way to the $68-$70 thousand zone. However, it is worth noting that the market may be subject to short-term corrections, especially given the high growth rate and the approaching presidential elections in the United States.
On Sunday, September 22, bitcoin (BTC) is trading around $62.7 thousand, its price has increased by about 4.7% over the week. Well-known crypto analyst Konstantinas Sizovas analyzed the situation on the market and assessed the prospects for the movement of the bitcoin rate over the next seven days.
Institutional interest in cryptocurrencies continues to grow. As the yield on the 2-year Treasury note fell to 3.573% this week, the yield on the 10-year note fell to 3.727%. Investors began to pour capital into riskier assets such as stocks and cryptocurrencies. Over $300 million has flowed into US spot Bitcoin ETFs this week, indicating growing confidence in digital assets from traditional investors. According to a report from crypto exchange Gemini, 57% of cryptocurrency owners feel comfortable making it a significant part of their investment portfolio. The market is now pricing in expectations of another 50 basis point Fed rate cut on November 7. If there is no significant correction in the coming days, then, according to cyclical analysis, the rally could continue until September 26. According to BitRiver forecasts, a breakout of $70,000 will signal a new rally with potential targets above $75,000.
Other cryptocurrencies followed Bitcoin in growth. BNB rose by 5.8%, SOL rose by 8%. Ethereum also added 6% and is now trading around $2,570. But, unlike Bitcoin, Ethereum has fallen significantly in price compared to its peak values in the first half of the year, when its weighted average rate touched $4,005. Positive trading dynamics were also added by reports that MicroStrategy raised $1 billion using bonds to buy bitcoins. Over the past week, its company balance increased by 7,420 BTC to 252,220 BTC.
Overall, the week ended on a positive note for the crypto market, but investors should remain vigilant and consider possible risks associated with political uncertainty and regulatory changes.
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