Turn in US Fed interest rate cycle could drive Bitcoin rally forward

Investors with high risk appetite may take 2-5% exposure in their portfolios to this volatile, unregulated asset

Bitcoin, the premier cryptocurrency, is once again attracting investor interest. After a dramatic plunge in value last year — from $66,935 on November 10, 2021 to $16,652 on November 21, 2022 — this digital asset is now witnessing a resurgence, with its price rallying to around $ 29,000 currently.

Expectation of change in Fed policy driving rally

The US Federal Reserve (Fed) is close to the end of its rate hike cycle. Several regional banks in the US have failed, commercial real estate is struggling, and homebuyers are having a hard time paying their mortgages. “Due to all these factors,