Bitcoin touches $61,000
During the opening hours of trading, Bitcoin's price soared past $61,000, despite the ongoing challenges of market instability.
The BTC Volatility Index, a tool for assessing the fluctuation of Bitcoin's value in terms of the U.S. dollar, registers at 3.07%. This index reached a peak of 3.25% on August 10, one day after Bitcoin's valuation dropped below $54,000, and has been slow to decline since then.
As of this moment, Bitcoin's valuation hovers around $60,860, marking a 5% increase over the last 24 hours, according to figures from CoinGecko.
Despite some positive movements, the investment community remains on edge.
The current wave of volatility is intensified by the wider financial terrain, with emerging signs of economic deceleration and escalating concerns of a recession prompting investors to proceed with caution.
The decision on interest rates from the Federal Reserve's Open Markets Committee is eagerly awaited on September 18. Nonetheless, even positive actions such as rate decreases by the Fed, which traders are almost certain of in September as indicated by the CME FedWatch Tool, might not have an impactful effect.
The numerous investors are biding their time until the post-election period settles because the digital currency market's capability to leverage favourable macroeconomic shifts is still limited.
However, moving forward, there's a growing conviction among traders that the year will conclude on a positive note. For example, Jamie Coutts, the Chief Crypto Analyst at Real Vision, told that there are early indicators of enhanced global liquidity.
Coutts highlighted that in the past month, the Bank of Japan and the People's Bank of China have injected liquidity worth $400 billion and $97 billion, respectively.
Coutts also noted that gold has been reaching new record highs recently—despite Bitcoin and gold's correlation significantly weakening since the beginning of the year.
