Bitcoin and other cryptocurrencies are leaving behind a good July. The number one cryptocurrency with its market value is about to complete the month, which started with $ 18,780, at $ 24,500. Bitcoin gained 23 percent in July, while the second largest cryptocurrency, Ether, was 62 percent. The last time Ether experienced such a monthly rise was January 2021.
The expectations of some market players that the US central bank, the Fed, will begin to act more cautiously in raising interest rates, reflect positively on risky assets. Signs that the Fed is approaching the end of its rate hike cycle are bringing an uptick in all risky assets, experts say. Speaking to Bloomberg, investment advisor Cici Lu said, “The liquidation of leveraged positions seems to be over. The markets may have reached the bottom.” makes the comment.
The fact that the increase in Ether is significantly higher than Bitcoin is explained by the fact that the Ethereum blockchain is approaching the transition from proof of work (PoW) to proof of stake (PoS). It is stated that the expected Merge in Ethereum, that is, the merger, can take place in September.
Apart from Bitcoin and Ethereum, double-digit increases are noticeable in altcoins. In July, among the top 100 cryptocurrencies, Ethereum Classic was up 175 percent, Polygon 114 percent, Quant 114 percent and Uniswap 90 percent.
How Will FED's New Interest Policy Affect Bitcoin?
According to the new policy of the US Federal Reserve (FED), the aggressiveness in interest rate increases will now come to an end. The FED, which is expected to continue to increase interest rates until the end of the year, is expected to gradually reduce these rates. Fed Chairman Jerome Powell, who predicts a 3.5 percent interest rate for the end of 2022, says that unexpected decisions will not be taken in the following meetings. This attitude of the FED was quickly reflected in Bitcoin and altcoins. Cryptocurrencies, which may have come to the end of a major bear season, may step by step start the new bull season.