The price of Bitcoin (BTC) has risen another 1% in overnight trading and is holding above $27,000 U.S. as investors move money back into cryptocurrencies.
Data shows that professional traders are making increasingly bullish bets on cryptocurrencies ahead of the upcoming interest rate decision by the U.S. Federal Reserve on September 20.
In the past 24-hours, Bitcoin’s price rose as high as $27,400 U.S., its highest level in a month, as investors’ risk appetite returns.
Bitcoin’s price had been stuck around $26,000 U.S. for most of the summer, though it fell to $25,000 U.S. in August amid declining trading volumes.
Now, Bitcoin’s price is testing its 50-day moving average and pushing above the key support level of $26,000 U.S., say analysts.
Crypto tends to move higher or lower based on the interest rate decisions of the U.S. central bank. The U.S. Federal Reserve is widely expected to hold rates steady at current levels into next year.
Other cryptocurrencies, including Ethereum (ETH), the second largest digital asset by market capitalization, are also seeing their prices rise.
Ethereum’s price has gained nearly 1% in the past 24 hours and is now trading above $1,600 U.S. per digital token.
Despite the summer slump, Bitcoin’s price has gained nearly 65% year-to-date.
