Cryptocurrency Market Update: Bitcoin Hits $60,700, Ethereum Gains on US Rate-Cut Bets
The realm of cryptocurrency is inherently volatile and constantly in flux, with prices experiencing rapid fluctuations in a matter of moments. This has a profound impact on investors, underscoring the significance of obtaining reliable insights and information regarding the latest market developments.
As of 1:06 pm IST, Bitcoin (BTC) was being traded at $60,798, accounting for a 2% uptick over the preceding 24 hours. Simultaneously, Ethereum (ETH) recorded a gain of 1.2%, reaching a trading price of $2,631.
Market analysts attribute the surge in Bitcoin and other cryptocurrencies to the recent release of the FOMC meeting minutes, which alluded to a potential interest rate cut in September. Shivam Thakral, CEO of BuyUcoin, remarked that a reduction in interest rates could lead to amplified market liquidity as a result of decreased borrowing costs.
The focus of market participants has now shifted to the forthcoming U.S. initial jobless claims data, slated for release at 6:00 pm IST, as well as the comments of Fed Chair Jerome Powell at the Jackson Hole Economic Symposium on Friday. According to Vikram Subburaj, CEO of Giottus, Bitcoin may potentially rally to $63,500 if the US jobless claims report displays a decrease in claims.
Apart from Bitcoin, other major tokens such as BNB, XRP, Dogecoin, Uniswap, Polkadot, Polygon, Chainlink, and Shiba Inu also experienced gains, with some surging by up to 11%. The total volume of stablecoins currently stands at $65.33 billion, constituting 92.97% of the total crypto market’s 24-hour volume, as indicated by data from CoinMarketCap. Furthermore, Bitcoin’s market cap has ascended to $1.2 trillion, with a dominance of 56.95% and a 30% upturn in volume over the previous 24 hours.
ZebPay’s trade desk provided a technical perspective on the present state of the cryptocurrency market. Despite a 21% rally in Bitcoin since early August, the cryptocurrency has encountered challenges in maintaining a price above $62,000. The market is witnessing mixed signals, with derivatives metrics indicating subdued buyer interest, while macroeconomic indicators point to a shift away from cash positions. As traders await the Federal Reserve’s impending decision in September, there is a reluctance to heighten exposure to crypto assets, posing a hurdle for Bitcoin to reclaim the $62,000 level.
Examination of recent price movements reveals that Bitcoin has encountered difficulties in sustaining a position above the $70,000 mark. Following a correction of nearly 25% and a low of $49,000, the cryptocurrency did not conclude below the crucial support level of $52,500, leading to a rally up to $62,745. Presently, BTC is being traded within a range of $57,500 to $62,000 with low volumes. Breakouts on either side of this range, accompanied by substantial volumes, will further dictate the trend for the asset.
It is pertinent to acknowledge that the perspectives and opinions articulated by experts in this article are reflective of their individual insights and do not necessarily align with those of the Economic Times. For additional updates and news on financial markets, subscription to the ETMarkets WhatsApp channel or visits to ETMarkets.com for the latest market trends and stock tips are encouraged.
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