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Here’s the 3 Reasons Why Crypto Prices are Pumping Right Now

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A new trend in the cryptocurrency market is emerging now that Bitcoin and the stock market are approaching critical levels. They are driving the uptrend of cryptocurrency prices and will ultimately determine the fate of the market. It’s been a week of ups and downs for Bitcoin investors as the cryptocurrency either encouraged or disappointed them.

Bitcoin made a strong move today as the crypto industry’s market capitalization surpassed $1 trillion for the first time since October 5, 2022. $30,000 in November. This means that the price of cryptocurrencies is rising.

3 reasons why cryptocurrency prices are rising right now

The current surge in cryptocurrency prices can be attributed to three factors.

U.S. stocks uptrend

On October 26, US stock indices rose, extending the market rally that pushed the Dow Jones Industrial Average to a six-week high. U.S. stocks rose for his third straight day as U.S. Treasury rates fell as a result of dismal consumer confidence data and rising concerns about the cost of living.

S&P500 Price Chart – Source: Tradingview

The Nasdaq Composite rose 246 points (2.3%) to $11,199 and the S&P 500 rose 61 points (1.6%) to $3,859. The Dow Jones Industrials rose 337 points (1.1%) to $31,836.

The report was the latest indication that the US economy is slowing. After a series of aggressive rate hikes to combat inflation, the market is now welcoming potential policy easing from the Federal Reserve. In addition, rising stock prices have spurred the rise in the value of cryptocurrencies. This is because these two asset classes are closely related.

Bitcoin price rises as US dollar weakens

The value of cryptocurrency coins is inversely proportional to the value of cryptocurrencies. USDThis means that when the value of the dollar falls, the price of cryptocurrencies will rise. The dollar fell to his three-week low against his rivals on Oct. 26. The dollar index, which compares the US currency with other he-six currencies including the yen, euro and pound, was little changed at 111.01, not far from the session low. The lowest level since October 5 at 110.75.

dollar

Dollar Index Price Chart – Source: Tradingview

The fall in the value of the dollar is driving the rise in the value of cryptocurrencies. This strong rally in cryptocurrencies, fueled by today’s small collapse in the United States Dollar (USD) index, has led some to believe that cryptocurrencies have hit bottom and are now poised to rise.

upon Monday, CNBC’s Gym Kramer predicted that of rising worth of of dollar Might be so soon arrival this is high point.

“The strong dollar has become an albatross around the neck of an already battered market, but as Carly Garner interpreted, charts suggest the dollar may finally be peaking. doing.”

Fed rate hike slowdown hopes for a resurgence

The US Federal Reserve plans to raise interest rates for the fourth time by 75 basis points on November 2nd. wall street journal sauce. But Fed officials are likely to consider whether and how they will announce their intention to lower rate hikes in December. “We will carefully discuss the pace of tightening at our next meeting,” he said.

Some policymakers want to avoid a rate hike early next year. But some delegates argued that the economy needs higher rates. The cryptocurrency market is expected to be affected by rising interest rates. The Federal Reserve’s recent interest rate hike coincided with a drop in the value of cryptocurrencies. As a result, expectations that the Federal Reserve will cut interest rates have sparked a surge in cryptocurrency prices.

The positive market impact of this article is illustrated by the resurgence of Bitcoin. This will force the safe-haven US dollar to give up some of its intraday gains. We may see a recovery in the cryptocurrency market.

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