Bitcoin Rises Back Above $90,000 as Investors Expect Interest Rate Cuts
The price of Bitcoin rose above $90,000 for the first time in about a week, recovering after a month-long selloff, Bloomberg reported Wednesday (Nov. 26).
Bitcoin exchange-traded funds (ETFs) also saw a turnaround, with inflows of $130 million on Tuesday (Nov. 25) after an outflow of $3.6 billion this month, according to the report.
The report attributed these gains and those of other digital assets as well as equities to investors’ growing expectations that the Federal Reserve will soon return to cutting interest rates.
Seeking Alpha also reported Wednesday that Bitcoin rose back above $90,000, adding that the cryptocurrency was still off 19% month over month and 5% year to date.
The report said that all the major Wall Street averages moved higher as new economic data was released and as speculation about rate cuts increased.
CoinDesk reported Wednesday that Bitcoin had risen about 12% since early Friday (Nov. 21), when it dropped to about $80,000.
It was reported Oct. 10 that crypto prices plunged when President Donald Trump announced an added 100% tariff on China as well as export controls on software.
This led to what one observer called “the largest liquidation event in crypto history,” days after the price of Bitcoin hit a record $125,000.
It was reported Nov. 4 that the price of Bitcoin had been sliding downward for a few weeks at that point and that it was doing so amid investor concerns about steep artificial intelligence (AI) valuations.
Cryptocurrency draws many of the same investors as AI stocks, which means when one sector tumbles, it can hurt the other, the report said.
On Nov. 5, Citi analysts said flows into U.S. spot Bitcoin ETFs had slowed considerably in the preceding weeks, hindering what they called a crucial pillar of support for its positive outlook.
The analysts also pointed out that the number of large Bitcoin holders had waned while the smaller retail wallets kept rising, signaling that some long-term investors could be selling.
PYMNTS reported Tuesday (Nov. 25) that while market volatility had erased nearly all of Bitcoin’s gains this year, a wave of announcements from payment giants, wallet providers and eCommerce platforms suggested that the technical groundwork for everyday crypto spending was accelerating faster than ever.
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