Bitcoin just soared above the $38,300 mark. This was fueled by renewed optimism surrounding the potential approval of a spot exchange-traded fund (ETF); and speculation about upcoming rate cuts in traditional markets.
Leading the charge among layer-1 blockchains, Solana’s SOL tokens recorded an impressive 15% surge over the past 24 hours, erasing losses sustained in the previous week. Meanwhile, Avalanche’s AVAX saw a notable 10% increase, with Cardano’s ADA and Tron’s TRX not far behind, rising over 8%.
Bitcoin’s upward momentum gained traction late Tuesday following remarks by Federal Reserve governor Chris Waller. He suggested that recent economic data indicated a slowdown in the economy. Waller’s comments also hinted at a potential future moderation in inflation. Moreover, Waller hinted at the possibility of rate cuts in the coming months if inflation continues to trend downwards.
The decisions regarding interest rates often have significant ramifications on the markets. Typically, higher rates prompt investors to shift from risk assets like stocks and cryptocurrencies to safer investments like bonds, negatively impacting asset prices.
Global bank Standard Chartered reiterated its April prediction that Bitcoin (BTC) could reach $100,000 by the end of 2024. Most investors anticipate such movement based on the approval of spot Bitcoin ETF, which will play as catalyst for upward trend.
