Anticipation of a pause in interest rate hikes, spurred by the upcoming Federal Open Market Committee (FOMC) meeting on September 20, stimulated a marked increase in Bitcoin prices earlier today.
Bitcoin rose over 3.4% to hit a September high above $27,400 after a stagnant weekend where it held the key $26,000 support level.
Some analysts argue Bitcoin's ability to hold crucial support makes it the best crypto to buy now ahead of the pivotal FOMC decision.
Many investors are betting on a freeze to interest rate increases at the FOMC meeting later this month. This expectation has been driven by the latest Consumer Price Index (CPI) report showing inflation somewhat slowing in August. Specifically, the annual core CPI rate that excludes food and energy fell to 4.3% from 4.5% in July.
With inflation potentially nearing the Fed's 2% target, markets strongly believe rates could be paused. CME Group's interest rate probabilities echo this, forecasting a high chance of no hike. This has boosted hopes for a recovery in crypto markets, with Bitcoin looking primed as the best crypto to buy now.
While the price bounce is positive, risks still remain. Tighter regulations and recent crypto market turmoil continue weighing on investor sentiment.
However, Bitcoin's ability to defend the $26,000 support zone keeps trader optimism intact. Experts see upside potential if Bitcoin holds this critical level headed into the Fed's rate decision.
Despite trimming its gains from earlier highs, Bitcoin is still nursing a 0.77% increase so far today, changing hands near $26,743 as of writing.
Following Bitcoin's lead, other cryptos like Chainlink, Wall Street Memes, Apecoin, Bitcoin BSC, and Optimism are also on the rise. With their promising utility andRead more on cryptonews.com