Bitcoin price rallied over 10% to above $21,000, its largest daily gain in six months, aiming for $25,000 soon
Today, Bitcoin price rallied over 10% to the $21,000 level, its largest daily gain in six months. At the time of writing, BTC was trading at $21,293. As recently as four days ago the price had dipped as low as $18,500.
BTC/USD 4-hour chart | Source: TradingView
After a big rally past $21,000, Bitcoin price momentum may not last
Bitcoin’s price gain was the biggest in six months, leading to a broad-market rally in cryptocurrencies that pushed the industry’s market capitalization back over $1 trillion. The largest cryptocurrency by market value jump still drew into the industry’s concerns on whether this sudden reaction could be seen as a positive in the long term. The target traders are aiming for is $25,000.
Bitcoin, price inflation and monetary inflation
— CryptoQuant.com (@cryptoquant_com) September 9, 2022
Bitcoin and Ether both moved aggressively higher, with BTC posting its largest daily gain in six months, while ETH rose by 10% during that time, although both cryptocurrencies remain down by more than 50% for the year.
Today’s push appears to be tied to signals that the U.S. central bank will reverse course from monetary tightening to monetary easing in 2023, lowering interest rates in the process. According to the Federal Reserve, the central bank now intends to raise rates to above 3.5% in 2023 and not retreat below 3% until after 2024. The dot plot represents the Fed’s expectations of future interest rate levels.
Altcoins traded higher, Terra (LUNA) gains 200% in a few hours amid a speculative frenzy. It recreated the version after dramatically imploding earlier this year. The sudden rally of the revived Terra network’s token comes after a similar surge of the collapsed Terra Classic blockchain’s LUNC token. Polkadot (DOT), Uniswap (UNI), and avalanche (AVAX) rose 4%, 4%, and 7%, respectively. The overall cryptocurrency market cap stands at $1,048 trillion, and Bitcoin’s dominance rate is 38.9%.
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