Bitcoin price has been trading sideways in the past weeks, significantly declining from the $29,000 support
Bitcoin price rallied above $26,000 levels on Wednesday, posting its biggest gain in almost six weeks.
The benchmark crypto fell below its previous range of $29,000 to $30,000 a few days ago.
Bitcoin enjoys surge
Bitcoin posted its biggest gain in almost six weeks amid increased optimism that the Federal Reserve will hold interest rates steady.
The pioneer cryptocurrency surged to $26,519, gaining 1.86% in the last 24 hours.
Bitcoin recovery coincides with stock prices rising to their highest level since June while bond yields decreased. Bets that central banks will hold off on raising interest rates to avoid a recession were encouraged by economic reports from both the US and Europe.
At the close of markets, the S&P, Dow, and Nasdaq were all green, up 1.10%, 0.5%, and 1.59%, respectively.
Read more: SpaceX didn’t cause Bitcoin price crash, here’s what likely did
Investors anticipated a healthy growth for Nvidia. Since January, the chip-maker’s stock has risen 200%.
On Wednesday, Nvidia’s shares jumped 2.2%, implying that investors are betting that the stock will see a similar impressive run like it did in the second quarter results in May.
“The correlation between equity indices and bitcoin has declined to near zero in 2023,” said Sam Callahan, lead analyst at Swan Bitcoin. “Bitcoin’s price appears to be bouncing after a sharp sell off last week that was exacerbated by over $2.7 billion worth of liquidations of leveraged positions.”
All this comes ahead of Federal Reserve Chair Jerome Powell Friday’s Jackson Hole speech. It’s expected that he would push back on calls for interest rate cuts and instead take a dovish tone to ensure that inflation continues to steadily decline.
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