Bitcoin is getting more attention from traditional investors who are new to the digital asset world through US exchange-traded funds. The biggest cryptocurrency had a big jump on Friday when a report showed that US employment didn’t grow as much as expected. This made people think that interest rates might go down, which makes risky investments like Bitcoin more appealing. This surge in price helped make up for the losses from earlier in the week, when people were worried that the Federal Reserve might raise interest rates and that demand for ETFs was going down.
BTC’s price has been swinging up and down a lot recently. This is partly because of the influence of investors who are using ETFs to buy Bitcoin. These investors are different from the ones who have been buying BTC for a long time. They tend to follow more traditional ways of thinking about investments.
When the report about US employment came out on Friday, it surprised a lot of people. The number of new jobs created was lower than what experts had expected. This made some people think that the Federal Reserve might decide to lower interest rates. When interest rates are lower, people are more likely to invest in things like stocks and cryptocurrencies because they can make more money.
Bitcoin recovers from the lowest level in about two months
The news about interest rates made the price of Bitcoin go up quickly. This was good news for people who had bought BTC earlier in the week when the price was lower. Some investors were worried that the Federal Reserve might want to raise interest rates because of inflation. But the report about US employment changed their minds.
Before the report came out, some investors were also worried that the demand for ETFs that buy Bitcoin was going down. ETFs are a popular way for people to invest in BTC without having to buy the cryptocurrency directly. But when the price of Bitcoin went up on Friday, it showed that there are still a lot of people who want to invest in BTC through ETFs.
The recent price swings of Bitcoin show how new investors using ETFs can have a big impact on the cryptocurrency market. As more traditional investors enter the world of digital assets, BTC is starting to behave more like other investments that they are used to. This could mean that BTC’s price will continue to be influenced by factors like interest rates and economic reports in the future.
