Bitcoin Rebounds to $65,000 Amidst Fed Rate Cuts and Crypto Regulation Support

Bitcoin Rebounds to $65,000 Amidst Fed Rate Cuts and Crypto Regulation SupportBitcoin prices have recently surged, breaking through the $65,000 mark on the evening of October 14th and reaching a high of $66,482 on the morning of October 15th, its highest point since July 30th. This bullish momentum is attributed to several factors, including the Federal Reserve's rate cut policy and support for cryptocurrency regulation from US presidential candidates

Bitcoin Rebounds to $65,000 Amidst Fed Rate Cuts and Crypto Regulation Support

Bitcoin prices have recently surged, breaking through the $65,000 mark on the evening of October 14th and reaching a high of $66,482 on the morning of October 15th, its highest point since July 30th. This bullish momentum is attributed to several factors, including the Federal Reserve's rate cut policy and support for cryptocurrency regulation from US presidential candidates.

Federal Reserve Rate Cuts Provide Key Support for Bitcoin's Rise

On September 18th, the Federal Reserve announced a 50 basis point rate cut, marking the first such reduction in four years. This move boosted confidence in global financial markets and led to a recovery in the crypto market.

Zhao Wei, senior researcher at OKX Research Institute, believes that the rate cut policy has created more liquidity, prompting investors to seek high-yielding assets. Bitcoin, as a high-risk, high-return asset, has become a popular choice for capital inflows. Additionally, rate cuts could exacerbate the depreciation risk of fiat currencies like the US dollar, encouraging investors to seek inflation hedges. Bitcoin, as a scarce asset, is considered a tool for combating inflation and fiat currency depreciation, thereby driving demand.

Support for Cryptocurrency Regulation from US Presidential Candidates Boosts Market Confidence

US presidential candidate Kamala Harris, in an effort to engage with Black male voters, recently pledged support for a cryptocurrency regulatory framework, offering more investment certainty for the 20% of Black Americans who own or have owned digital assets. This news has been positive for the digital currency trend.

Previously, former US President Donald Trump proposed using Bitcoin or "crypto checks" to pay off the US's $35 trillion national debt, aiming to avoid a debt crisis. These events indicate that US political circles are increasingly paying attention to cryptocurrencies and are actively exploring regulatory frameworks.

Cryptocurrency Market Remains Volatile, Investors Need to Invest Rationally

Despite the rise in Bitcoin prices, the cryptocurrency market remains volatile, and investors need to exercise caution. Recent data from NYDIG shows that Bitcoin exhibits significant volatility but also boasts impressive investment returns. Over the past 12 months, Bitcoin's Sharpe ratio has only been surpassed by gold.

Zhao Wei cautions that Bitcoin prices are also influenced by cryptocurrency market cycles, market structure, and other factors. Investors should maintain rationality and caution, comprehensively assess market conditions and their own risk tolerance, and avoid blindly following trends.

Global Cryptocurrency Regulatory Policies Continue to Improve

As the influence of cryptocurrencies increases, regulatory policies for cryptocurrencies are gradually maturing in various parts of the world.

Hong Kong, a leading cryptocurrency sandbox region, has been actively promoting cryptocurrency regulation and practice in recent years. The Hong Kong Monetary Authority announced plans to rename virtual banks as "digital banks" and intends to submit a regulatory draft for fiat-backed stablecoins to the Legislative Council by the end of the year.

The US stance on cryptocurrency regulation is also evolving. In recent months, the US Securities and Exchange Commission (SEC) approved the issuance of two spot ETH ETFs by Grayscale and ProShares, signaling a further opening up of the SEC towards crypto ETFs.

The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA) jointly issued a consultation paper on Market in Crypto-assets (MiCAR) regulations, proposing standardized tests and templates to ensure consistency with MiCAR standards.

South Korea launched its first cryptocurrency regulatory framework, the "Virtual Asset User Protection Act," in the second half of the year. The act is now in effect with a one-year grace period to refine regulatory details.

Countries like Dubai and Switzerland, with their advantages in regulatory clarity, capital gains tax exemption, favorable corporate tax rates, and affordable licensing fees, have become popular destinations for crypto business investment.

As the influence of cryptocurrencies continues to grow, regulatory policies around the world will continue to improve, providing strong support for the healthy development of the cryptocurrency industry.

Conclusion

Bitcoin prices have recently surged, driven by factors like the Federal Reserve's rate cut policy and support for cryptocurrency regulation from US presidential candidates. While there is heightened interest in Bitcoin, investors need to invest cautiously, thoroughly evaluating market conditions and their own risk tolerance. At the same time, global cryptocurrency regulatory policies are continually being refined, offering strong support for the healthy development of the cryptocurrency industry.