Bitcoin’s recent surge above $27,000 has reignited optimism in the crypto market, driven by increased demand from institutional investors ahead of the upcoming halving event in around 6 months.
In a surprising turn of events, Bitcoin (BTC) managed to surpass the $27,000 mark in September, bringing hope for a resurgence in altcoin bullish sentiment.
According to cryptocurrency analysts, Bitcoin reached as high as $27,400 on Monday before experiencing a minor retracement and stabilizing around $26,800 during early Asian market trading on Tuesday.
This sudden spike in Bitcoin’s price follows a positive closing last week and anticipation of high-impact news later this week.
Despite a lack of significant announcements on Tuesday that might have triggered the bullish rally, the cryptocurrency market has gained substantial support from institutional investors seeking a hedge against rising inflation.
Just last week, the European Central Bank (ECB) raised interest rates for the tenth consecutive time, reaching an all-time high of 4% in an effort to combat increasing inflation.
Interestingly, the ECB’s projections indicate that inflation in the region could surge to as high as 5.6 percent.
On Wednesday, the United States Federal Reserve is expected to hold a press conference and provide insights into the economic outlook and the current interest rate. Wall Street analysts widely anticipate the Fed to pause its interest rate hikes at 5.50%.