Cryptocurrencies have been rebounding in November after rangebounding for the last two months. Last week, Bitcoin (BTC) made a strong comeback and was close to $38,000. The crypto currency traded above $35,490 on Nov 14.
The stock has reached new highs each of the last three weeks, and now looks set to reach the $40,000 level, having more than doubled by 119.9% so far this year. Experts believe this could happen at any time in the last two months of the calendar year.
News that investors can win $37,900 last week, as well as more information about the expected approval of the Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC), has further raised investors’ optimism. The approval of the ETF is likely to increase demand, as it provides traditional investors with a way to gain access to Bitcoin and other cryptocurrencies that can be traded on the regular stock market. This could lead to an increase in overall demand for cryptocurrencies.
The Federal Reserve’s decision to keep interest rates unchanged at 5.25-5.5% has made market participants believe that the central bank may be done with its interest rate hikes. This has led market participants to expect the Federal Reserve to start cutting interest rates in 2019. Higher interest rates have a negative effect on many growth sectors, including technology, consumer discretionary goods and cryptocurrency.
The decision of the Federal Reserve to put a stop to rate hikes is positive for the cryptocurrency market. This pause in rate increases is expected to reduce potential negative effects on cryptocurrency, creating a more favorable climate for their growth.
Coinbase Global, Inc. (COIN) provides technology and financial infrastructure to support the global currency economy. It gives consumers with a primary financial account in the crypto world, a liquidity marketplace for institutional crypto asset transaction, technology and services that developers can use to create crypto-based apps and accept cryptocurrencies as payment.
Interactive Brokers Group, Inc. (IBKR) is a global electronic automated broker available in over 100 countries. It trades, processes and executes cryptocurrency transactions and offers customers the chance to trade cryptocurrency futures through its commodities futures trading desk.
You can also use PayPal Holdings, Inc. (PYPL) to pay for goods. It is a digital wallet that allows users to transfer, buy and sell various cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Through its mobile wallet platform, Venmo, users can engage in buying and selling cryptocurrency.
Block, Inc. (SQ) is the parent company of an online digital payment platform and mobile app for consumers and retailers. Its Cash App allows users to send, buy, and receive Bitcoin. Additionally, its decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is one of the biggest Bitcoin investors.
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