Bitcoin Surges Past $61K After FOMC’s Hype for September Rate Cut
The Federal Open Market Committee (FOMC) recently released the minutes from its July 30-31 meeting, revealing that the majority of Fed officials are in favor of implementing an interest rate cut in September. As a result, Bitcoin briefly surpassed $61,000 and saw a surge in Open Interest by nearly $2 billion.
The FOMC minutes disclosed that Federal Reserve officials are strongly considering an interest rate cut in September, and also discussed the possibility of a 25 basis point cut during the July meeting. They emphasized that if economic data continues to meet their expectations, it would be appropriate to ease policy at the next meeting. This decision is a response to the easing inflation and strong labor market indicators.
This upcoming rate cut will mark the first time the Federal Reserve has deviated from tightening measures since 2020. Market indicators indicate that 69% of investors anticipate a rate cut, with 30% of them expecting a steeper 50 basis point cut.
Following the release of the “dovish” minutes, Bitcoin’s price jumped by 2.6%, reaching $61,189 before settling at $60,890.81. The trading volumes of Bitcoin also saw a 26% increase, reflecting the growing market interest in the cryptocurrency. The Chaikin Money Flow (CMF) index registered a rise in buying pressure, coinciding with the release of the FOMC minutes.
However, the upward trend in Bitcoin’s price remains delicate, as indicated by the Awesome Oscillator (AO) on the hourly chart. While it shows a positive momentum, it is necessary to await further confirmation to gauge its strength.
Data from Coinglass also revealed a significant increase in Open Interest for Bitcoin, surging from around $30 billion to $32 billion. The cryptocurrency’s key resistance level continues to be in the $64,000-$66,000 range, with a majority of coins being bought at these levels. Consequently, sellers may enter the market once Bitcoin approaches this price range.
In conclusion, the FOMC’s plans for a rate cut in September have caused a ripple effect across the cryptocurrency market, resulting in a surge in Bitcoin’s price and Open Interest. With the increasing market interest in Bitcoin, the cryptocurrency may experience further price fluctuations in the coming weeks. Investors will be closely monitoring these developments as they prepare for potential shifts in the market.
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