BTC Price – Interest Rate Cuts Propel Bitcoin to New Highs Above $62K
BTC Price – Bitcoin (BTC) soared beyond $62,000 on August 23 following the opening of Wall Street, as the United States Federal Reserve announced its first interest rate cuts since 2019. According to data from Cointelegraph Markets Pro and TradingView, BTC hit a new local high of $62,323 on Bitstamp.
Fed’s Powell Signals Policy Adjustment Amidst Market Volatility
Investors responded positively to Federal Reserve Chair Jerome Powell’s confirmation that interest rates are now set to decrease. Speaking at the annual Jackson Hole symposium, Powell stated, “The time has come for policy to adjust,” signaling a shift towards a more accommodative monetary policy.
The eagerly awaited event saw Powell adopting a dovish stance, indicating an “appropriate dialing back of policy restraint,” though he did not provide a specific timeline for when the cuts would begin. Powell emphasized the Fed’s readiness to respond to economic risks, including potential labor market weaknesses, as highlighted by a recent revision showing job openings from March 2024 down by 818,000.
Market Bets on September Rate Cut as Bitcoin Enthusiasm Grows
CME Group’s FedWatch Tool revealed that markets are now betting on a 0.25% rate cut at the Fed’s upcoming meeting in late September. The news has bolstered bullish sentiment among Bitcoin market commentators. Scott Melker, a trader, analyst, and podcast host known as the “Wolf of All Streets,” noted Powell’s dovish tone with a post on X, while Arthur Hayes, former CEO of BitMEX, predicted a strong upward trend for crypto.
Bitcoin Faces Crucial Breakout Level
Monitoring resource CoinGlass tracked liquidity shifts across exchange order books, noting a significant block of ask liquidity added at $62,450, which momentarily capped BTC’s upward movement. Despite this, $62,000 remains the critical breakout level for bulls to flip into support on daily timeframes.
Michaël van de Poppe, founder and CEO of trading firm MNTrading, highlighted the importance of this level in his latest analysis on X, suggesting that if Bitcoin breaks through $62K, the market could see a continued rally throughout the week. He added that the significant inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) over the past week make such a scenario “likely.”
ETF Inflows Point to Potential Breakout
Data from Farside Investors, a UK-based investment firm, indicated that net inflows into Bitcoin ETFs for the first four days of the week surpassed $250 million. This influx of capital could further fuel Bitcoin’s momentum, supporting a potential breakout above the key $62,000 level.
As the market closely watches these developments, Bitcoin traders are increasingly optimistic about the prospects for continued gains in the coming days.
FAQ on Bitcoin’s Price Surge Following Fed’s Interest Rate Cuts
Why did Bitcoin’s price surge above $62,000?
Bitcoin’s price surged above $62,000 following the announcement by the U.S. Federal Reserve that it would implement its first interest rate cuts since 2019. Investors reacted positively to the news, driving demand for Bitcoin and pushing its price higher.
What did Fed Chair Jerome Powell announce that influenced Bitcoin’s price?
Fed Chair Jerome Powell announced that the Federal Reserve would begin lowering interest rates, stating that “the time has come for policy to adjust.” This dovish stance was a signal to markets that monetary policy would become more accommodating, which traditionally boosts asset prices, including Bitcoin.
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