After signaling a potential market reversal in the past few days, Bitcoin’s (BTC) price rebounded above $67k earlier today ahead of high-impact news in the coming weeks. The flagship coin reached a 24-hour low of about $65k before rallying to a high of around $67,538 on Thursday during the early European session.
As Bitcoin price rebounded in the last 24 hours, the altcoin market, led by Solana (SOL), also registered some gains. Consequently, more than $273 million was rekt from the crypto leveraged market, with the majority involving long traders.
Top Factors that Contributed to Bitcoin Price Rebound Today
Ongoing Economic Shift
Amid the mainstream adoption of Bitcoin, led by institutional investors, the macroeconomic outlook has significantly impacted the underlying value. On Wednesday, the Bank of Canada undertook a bold move to cut its benchmark interest rate by a half-percentage point to 3.75 percent, amid lowering inflation.
The Beige Book, a Federal Reserve system publication about current economic conditions across the 12 districts, depicts a stabilized economy with lower inflation, thus signaling a potential rate cut early next month after the U.S. 2024 elections.
“The Beige book comments got the markets’ attention and helped to solidify the belief that another 25 bps cut is coming in November and a high chance of one in December. The turn in the dollar was across the board afterward,” ForexLive noted in a blog post.
Rising Demand from Whale Investors
Despite the notable rebound and strengthening in the US dollar index amid the ongoing rally in the precious metal market, more investors continue to focus on Bitcoin as a long-term hedge against macroeconomic uncertainties.
On Wednesday, BlackRock continued its Bitcoin purchase spree after accumulating coins worth more than $317 million. Consequently, the supply of Bitcoin on centralized exchanges has continued to drop exponentially in recent years.
