Bitcoin and Ethereum Prices Surge on Expected US Rate Cuts
The cryptocurrency market has seen a notable increase in Bitcoin and Ethereum prices following indications of potential interest rate decreases in September by the Federal Reserve. As of 1:06 pm IST, Bitcoin (BTC) had risen 2% over the previous 24 hours, trading at $60,798, while Ethereum (ETH) gained 1.2%, trading at $2,631.
According to the CoinSwitch Markets Desk, BTC bulls are demonstrating strength above the $60k mark, but bears are demonstrating interest at the 21-week exponential moving average at $61.2k. The surge was further bolstered by a downward revision in U.S. employment growth data, which spurred hopes among market participants for more significant interest rate cuts from the Federal Reserve.
Shivam Thakral, CEO of BuyUcoin, elucidated that Bitcoin and other cryptocurrencies surged following the release of the FOMC meeting minutes, which hinted at a potential interest rate cut in September. These lower interest rates are anticipated to improve market liquidity as borrowing costs decrease.
Market participants are currently anticipating the release of U.S. initial jobless claims data and the comments from Fed Chair Jerome Powell at the Jackson Hole Economic Symposium. Vikram Subburaj, CEO of Giottus, stated, “Bitcoin could potentially rally to $63,500 if today’s US jobless claims report shows a drop in claims.”
Alongside Bitcoin and Ethereum, the broader cryptocurrency market witnessed gains across major tokens, including BNB, XRP, Dogecoin, Uniswap, Polkadot, Polygon, Chainlink, and Shiba Inu, which rose by up to 11%. The volume of all stablecoins currently stands at $65.33 billion, accounting for 92.97% of the total crypto market 24-hour volume, as per data available on CoinMarketCap.
In the last 24 hours, the market cap of Bitcoin has risen to $1.2 trillion, with Bitcoin’s dominance currently at 56.95%. BTC volume in the last 24 hours also rose by 30% to $34.9 billion. However, despite these gains, Bitcoin has struggled to maintain a price above $62,000.
The ZebPay Trade desk provided a technical outlook, stating that Bitcoin is grappling with mixed signals, and traders appear reluctant to increase their exposure to crypto assets as the Federal Reserve’s September decision approaches. The asset has been trading sideways in a range from $57,500 to $62,000 with low volumes, and breakouts on either side of the range with good volumes will further determine the trend for the asset.
The upsurge in Bitcoin and Ethereum, as well as the gains in other major tokens, have coincided with hints of potential interest rate cuts from the Federal Reserve. Market participants are closely monitoring the upcoming U.S. jobless claims data and comments from the Fed Chair at the Jackson Hole Economic Symposium. It remains to be seen how the cryptocurrency market will respond to these upcoming events, as well as how Bitcoin will fare in reclaiming the $62,000 level in the near future.
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