Bitcoin has surged past $64,300, prompted by heightened expectations of a Federal Reserve interest rate cut amid global monetary easing, including newly adopted measures from China. It is approaching a critical resistance level at $65,000, which could signal a bullish momentum if surpassed. However, concerns over declining consumer confidence in the U.S. add a layer of uncertainty.

On Tuesday, Bitcoin’s value approached $64,300, marking a notable increase of nearly 2% over the preceding 24 hours. This rise comes as traders speculate a 61% probability of a consecutive 50 basis point interest rate cut by the Federal Reserve during its upcoming November meeting. Further, the cryptocurrency is targeting a breakthrough above the $65,000 threshold for the first time since early August, an essential indicator that could potentially confirm a bullish trend. The momentum for Bitcoin was bolstered by the recent monetary policy shifts, including China’s integration into what has become a global trend of easing monetary policies to stimulate economic growth. Although this development caused a temporary uptick in Bitcoin’s price, it faced volatility when the Conference Board reported a significant decline in U.S. consumer confidence in September, dropping from 105.6 to 98.7 – the largest monthly decline since August 2021. Dana Peterson from the Conference Board stated, “Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further.” Despite these fluctuations, the anticipation surrounding further monetary easing appears to have propelled Bitcoin’s rally throughout Tuesday’s afternoon trading session. Notably, the U.S. M2 money supply witnessed a considerable increase in August, further complementing the positive sentiment in the crypto markets. This economic backdrop also favored gold, pushing its price to a record high of $2,690 per ounce. Despite the recent gains, analysts remain cautious. Will Clemente remarked on the psychological difficulty of transitioning from a defensive strategy to a more aggressive one, stating that “A confirmed change in market structure above $65,000 on BTC is the threshold for risk on and switching this bias in my opinion.”

The article discusses Bitcoin’s recent price movements in the context of global monetary policy changes aimed at stimulating economic growth amid concerns about slowing economies. As major economies, including China, engage in monetary easing, traders are responding by increasing their expectations for interest rate cuts by the Federal Reserve, which in turn has affected cryptocurrency prices. This backdrop provides insight into how macroeconomic factors influence trading behavior in cryptocurrencies.

In conclusion, the recent surge in Bitcoin’s price, nearing $64,300, is primarily driven by expectations of monetary easing from global central banks amidst declining consumer confidence indicators. While Bitcoin is striving to break the key psychological level of $65,000, analysts highlight the need for a confirmed bullish trend before considering a shift in investment strategy. Thus, macroeconomic conditions and government policies will continue to play a crucial role in shaping cryptocurrency market dynamics.

Original Source: www.coindesk.com

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