Bitcoin’s (BTC) price has recovered and inched back up to $110,000 U.S. as an expected interest rate cut from the U.S. Federal Reserve on Oct. 29 approaches.
Markets are pricing in a 96% chance that the U.S. central bank lowers interest rates a further 25-basis points at the conclusion of its October policy meeting.
Lower interest rates are viewed as positive for risk assets such as stocks and cryptocurrencies such as Bitcoin and Ethereum (ETH).
Analysts say that BTC is staging a comeback as expectations for another interest rate cut in the U.S. rise.
Bitcoin – which trades 24 hours a day, seven days a week – had fallen as low as $105,000 U.S. in recent days amid broader market turmoil.
However, at $110,000 U.S., the largest cryptocurrency by market capitalization, is back trading at the level it is has largely been at since the start of summer this year.
Bitcoin did retest an all-time high above $126,000 U.S. at the start of October, but that rally, and others, have proved short lived in recent months.
BTC fell 14% in a single trading day and dropped as low as $103,000 U.S. after U.S. President Donald Trump threatened a 100% tariff on all Chinese imports starting Nov. 1.
Concerns about high stock valuations and potentially bad loans among regional banks in the U.S. have also led investors to sell risky assets such as stocks and crypto in recent weeks.
Despite the gyrations, Bitcoin is up 18% on the year.
