Bitcoin and other cryptocurrencies experienced a surge on Thursday as traders speculated that the Federal Reserve’s recent increase in interest rates could potentially be its last. Additionally, the crypto industry has been closely monitoring the progress of proposed legislation aimed at establishing a regulatory framework for digital coins in the United States.
Within the past 24 hours, Bitcoin has seen a 1.2% rise, reaching $29,519. This gain coincided with the anticipated interest rate hike by the Federal Reserve.
According to Sam Yilmaz, co-founder of Bloccelerate, a venture fund focused on cryptocurrencies, Wednesday’s Fed meeting was favorable for Bitcoin. Many believe that the interest rate hike in July, which reached a 22-year high, represented the peak of this tightening cycle or that we are now very close to it.
Alongside the interest rate developments, crypto traders are also closely observing the progress of several bills being discussed in the House of Representatives. These bills aim to establish a regulatory framework specifically designed for digital currencies.
Although it is unlikely that the Democratic-led Senate will pass this legislation, it is noteworthy that the bills have gained approval from the House Financial Services Committee with some support from Democrats. This signifies a potential bipartisan momentum towards establishing a more transparent regulatory framework for the crypto industry in the United States.
In addition to Bitcoin’s growth, Ether, the second-largest cryptocurrency, experienced a 1.8% increase, reaching $1,883. Other smaller tokens, commonly referred to as altcoins, also enjoyed growth, with Cardano rising by 3.8% and Polygon gaining 3.8%.