Bitcoin had a decent day on Tuesday, pushing back up towards $112,000 after getting beaten up pretty badly at the start of September. The main reason seems to be that everyone’s expecting the Federal Reserve to lower interest rates pretty soon.
The top cryptocurrency managed to gain around 0.8% and even poked above that $112,000 level for a bit. This was definitely welcome news for people who’ve been watching their portfolios take a beating since Bitcoin hit those crazy high prices back in August.
Here’s what’s weird though – crypto isn’t really benefiting as much as you’d think from all the positive vibes in regular markets. Stocks and gold have been doing pretty well, but digital coins are still kind of dragging behind.
There’s been some drama around companies that went all-in on buying Bitcoin. Firms like MicroStrategy and Metaplanet have been getting heat because their stock prices tanked recently. People are starting to wonder if this whole “buy tons of Bitcoin” strategy actually works.
The problem is pretty obvious when you think about it. These companies basically turned themselves into Bitcoin proxies, so when crypto goes down, their shares get hammered too.
Other digital currencies had a better time on Tuesday. Ethereum went up a little, while things like Solana and Cardano jumped around 3-4%.
Conclusion
Bitcoin’s bounce looks promising, but the real test will be whether it can hold these levels once the Fed actually makes their rate decision next week.
Also Read: Bitcoin Whales Shift
