Bitcoin Surges Past $61,000 Following Dovish FOMC Minutes

Bitcoin Surges Above $61,000 After Fed Minutes Fuel Rate Cut Speculation

Bitcoin Surges – Bitcoin (BTC) has rebounded above the $61,000 mark following the release of the Federal Open Market Committee (FOMC) meeting minutes for July. The minutes, released on Wednesday, revealed a dovish stance that has contributed to a positive shift in investor sentiment. Bitcoin’s price had been trading within a narrow range of $59,900 to $61,000 prior to this event.

Price Movement and Market Reaction

After the dovish FOMC minutes were published at 2:00 p.m. ET on Wednesday, Bitcoin’s price climbed steadily and briefly touched $62,000. Although it has since retreated to hover above $61,000, the cryptocurrency remains above the critical support level. This rebound reflects increased optimism in the market.

Funding Rate Shift and Investor Sentiment

The Bitcoin perpetual futures funding rate has turned positive, signaling a more optimistic outlook among investors. This shift indicates that traders are becoming more bullish, anticipating further price gains.

Increased Likelihood of Rate Cuts in September

The July FOMC minutes have been interpreted as supportive of a potential rate cut in September. The summary stated, “The vast majority observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.” According to the CME FedWatch Tool, there is now a 67.5% probability of a 25 basis point cut and a 32.5% chance of a 50 basis point cut at the upcoming meeting. Lower interest rates are expected to make risk assets, including cryptocurrencies, more attractive by reducing borrowing costs and encouraging investment.

Factors Behind the Cryptocurrency Market Rebound

Presto Research analyst Peter Chung highlighted several factors contributing to the recent rebound in the cryptocurrency market. In addition to the dovish FOMC minutes, Chung noted the impact of revised employment figures from the U.S. Labor Department, which suggested increased economic fragility. “A record downward revision in payroll and the dovish FOMC minutes last night triggered a rally across risk assets,” Chung explained. He added, “The yield curve steepened, the DXY is now down, and small caps and Bitcoin are up.”

Political Developments and Market Sentiment

Chung also referenced a recent ABC report indicating that Robert F. Kennedy Jr. plans to withdraw from the 2024 presidential race and endorse Donald Trump. Both candidates are known for their pro-crypto stances. “Topping up the positive sentiment was the news that Robert Kennedy Jr. is likely to drop out and endorse Trump instead, further helping his winning odds,” Chung added.

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