Bitcoin Gains on Reduced Prospect of Imminent Fed Rate Rise

Dow Jones10-19 14:57

0657 GMT - Bitcoin rises, supported by reduced expectations for further imminent interest-rate rises by the Federal Reserve and improving risk sentiment, Zaye Capital Markets analyst Naeem Aslam says in a note. The cryptocurrency's recovery reflects an improvement in liquidity expectations rather than a confirmation of a sustained reversal higher, he says. The market is pricing just a 12% chance that the Fed will raise rates on October 28, LSEG data show. "However, Bitcoin remains vulnerable to shifting investor sentiment, particularly as elevated inflation, restrictive borrowing conditions, and uncertainty surrounding future monetary policy continue to influence demand for risk-sensitive assets," Aslam says. Bitcoin rises 2.4% to a five-day high of $82,830, according to LSEG.

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