Bitcoin’s price rose over $10,000 on Wednesday for the fourth time in July. After hitting $11,000 earlier in the month, the drive to surpass the $12,000 to $13,000 range was not sustainable.
The last week of July mostly saw the pioneer digital currency trading below $10,000 with a sideways trend. It kept resisting hitting the $10,000 price for days.
The development eroded its gains for the month, which was very promising initially. Though, the price rally from the beginning of this week brought the total depreciation for the month to 8.96 per cent.
Fed’s Rate Cut
The US Federal Reserve on Wednesday reduced interest rates by 25 basis points. It is the first time in a decade since the Fed has slashed the rate.
Chairman of the board, Jerome Powell insists the cut was not a political factor nor an impending commencement of a prolong cutting sequence. Powell, however, attributed it to global developments and softened inflation as grounds for the policy action.
Interestingly, some members of the Federal Reserve Board opposed the decision to lower lending rates. Esther George and Eric Rosengren, of Kansas City and Boston, respectively preferred the standard to have remained same.
July Price Snapshots
The first week of July ended with Bitcoin price hitting $11,450 and a weekly growth rate of 2.81 per cent. There was much optimism as it appeared the upward price bearing in June would be sustained.
It was, however, a different picture when the price plunged 10.46 per cent the second weekend to trade at $10,256. Many percieved the drop to Donald Trump’s trashing of Bitcoin in particular and Cryptocurrency in general as a facilitator of criminal activities like money laundering and tax evasion.
The following week recorded a 2.25 per cent pump culminating in a price of $10,599, which was a break from the previous seven days downturn. Nevertheless, the last stretch of the month was characterised by losses.
By July 28, Bitcoin was selling at $9,552 shedding more than a thousand dollars. In seven days, it lost 9.57 percentage points.
What is in store for the market in August? Will the Fed’s rates cut fuel Bitcoin price rally? QBITtimes will be updating our readers about the developments.