Why Bitcoin and Other Cryptos Are Finally Back On the Rise Today
After struggling in May, Bitcoin (CRYPTO: BTC) snapped out of its funk today and had risen nearly 5% over the last 24 hours, as of this writing. Still down more than 34% this year, investors are anxiously trying to find a bottom in what has been a long and difficult year for cryptocurrencies. So, what's causing Bitcoin to climb higher today, and has the token finally bottomed? Let's take a look.
Bitcoin has seen intense selling pressure this year and has largely moved with the broader markets, trading similarly to tech and growth stocks. As inflation has surged and the Federal Reserve has guided for fast and aggressive hikes to its federal funds rate, the overnight rate at which banks borrow from one another, cryptocurrencies have sold off like other growth stocks. Part of this is due to the fact that as the federal funds rate climbs, so do the yields on safer assets like U.S. Treasury bills. This makes risky assets like Bitcoin, which went on a monster run in 2021, much less appealing.
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Source Fool.com
