Bitcoin Price at $60K — This is the Reason Behind the Surge

The biggest cryptocurrency in the world, Bitcoin, hits the $60,000 price range Today, September 14. There are different reasons behind the price increase, but the most notable are the U.S. economic data and buying activities from big companies. In the next part of this article, we will explain this new price development in detail and what to expect next.

Reason Behind Bitcoin Rise at $60,000

One of the most obvious reasons behind Bitcoin’s recent move to $60k is the new PPI data release. PPI (Producer Price Index) is data that shows how much U.S. companies spend to produce a product or service in the country. The latest PPI data release saw an increase of 0.3%, a bit more than most people anticipated. 

People often use the PPI data to monitor inflation. Therefore, when there’s an increase in PPI data, people believe inflation is increasing. They usually want the U.S. Federal Reserve (the government institution responsible for cutting and raising interest rates) to step in with a lower interest rate. 

Crypto investors believe lower interest rates are suitable for the crypto market as they make borrowing cheaper. This means people will be able to borrow money to invest in crypto for bountiful returns.

Will the Federal Reserve Reduce Interest Rates? 

According to Chris Larkin, the Morgan Stanley E-Trade trading and investment managing director, many financial experts believe we might see a 0.5% interest rate cut from the Fed. The recent PPI data and the low unemployment filings support an interest rate cut.

People are now anticipating the new interest rate release from the Federal Reserve. A lower interest rate will encourage more people to take out loans. In return, some will invest their money into Bitcoin because of its high return on investment.

Big Businesses are Accumulating More Bitcoin

Another reason that stimulated the recent increase in Bitcoin’s price to $60k was the large number of buys from big and influential companies. For instance, Michael Saylor’s MicroStrategy (one of the corporate Bitcoin buyers) recently bought another 18,300 $BTC, increasing the company’s Bitcoin holding to $1.11 billion.

MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin. $MSTR https://t.co/WBBRSKxA1U

— Michael Saylor⚡️ (@saylor) September 13, 2024

Also, Marathon Digital Holding Inc., a Bitcoin mining firm, recently increased its Bitcoin holding by adding 5000 BTC. The company now owns 26,200 BTC, worth about $1.5 billion. 

When big companies like Microstrategy and Marathon engage in crypto trading activities, the crypto market often pays close attention to what they do. Investors believe these big companies have more information about the market movement and huge capital to ignite the move. Therefore, investors tend to follow the direction of these companies to leverage them to maximize gain.

The Rise of Bitcoin ETF

This week, Bitcoin ETF saw an increase in cash flow of $140.7 million. This signals institutional investors’ interest in Bitcoin is increasing. The crypto market might soon enter a new price rally if this huge cash inflow continues.

Will Bitcoin Increase in Price Continue?

As trading activities increase on the Bitcoin market, some financial analysts believe the $BTC price increase will continue for a while. Ali Martinez predicted the current Bitcoin price rally could hit the $64,300 price level.

Another financial expert is Ric Edelman, the founder of the Digital Assets Council of Financial Professionals. He made a long-term price prediction for  Bitcoin, believing $BTC could reach $420,000.

The current Bitcoin price action and economic data from the U.S. support some of these predictions. However, investors need to remember that Bitcoin and the entire crypto market are unpredictable. Therefore, trading cryptocurrency requires investors to do their personal research before investing in any crypto project.