Bitcoin, the leading cryptocurrency, has reclaimed the $38,000 mark. Its rally is buoyed by expectations of a policy shift from the U.S. Federal Reserve.
This Tuesday, Bitcoin briefly soared to $38,264, its highest in 18 months, echoing investor enthusiasm for riskier assets.
The top digital currency is now up by roughly 130% this year after its massive plunge in 2022.
More rate cuts?
The resurgence in Bitcoin's value is closely linked to anticipations of the Federal Reserve reducing interest rates in the face of decelerating inflation.
Federal Reserve Governor Christopher Waller's recent comments suggest that a rate cut could be on the horizon if the current trend in inflation persists.
This shift in monetary policy is increasing investors' appetite for cryptocurrencies, as evidenced by Bitcoin's remarkable recovery.
Market expert Michael Safai from Dexterity Capital views this as a precursor to a potential new bull run in crypto markets.
More delays from the SEC
The U.S. Securities and Exchange Commission's (SEC) decision to delay its verdict on the spot Bitcoin ETF has not affected the rally.
The SEC has postponed its verdicts on both the Hashdex and Franklin Bitcoin ETFs.
"Wow. SEC went super early on Franklin. They weren't due for another decision until Jan 1," James Seyffart, a leading ETF expert, has noted.