Bitcoin surged to $62,000 following the Federal Reserve’s announcement of its first rate cuts since 2019. Data from TradingView revealed that the price of Bitcoin on centralized exchanges reached as high as $62,323. Investors responded enthusiastically to Fed Chair Jerome Powell’s confirmation of the rate reduction during his recent address.
What Did Powell Say?
At the annual Jackson Hole symposium, Jerome Powell revealed that it was time to adjust monetary policy. The event, closely watched by the markets for clues on policy easing, witnessed Powell announcing an appropriate pullback of restrictions without providing a specific timeline for the cuts. Access COINTURK FINANCE to get the latest financial and business news.
“The current level of our policy rate offers us sufficient room to respond to any risks, including unwanted further weakening in labor market conditions,” Powell said.
What Are Market Expectations?
Recent data from CME Group’s FedWatch Tool indicated that markets are predicting a 0.25% rate cut in the upcoming Fed meeting at the end of September. Arthur Hayes, former CEO of the crypto exchange BitMEX, also forecasted a bullish trend in the crypto sector.
CoinGlass’s data analysis showed liquidity changes on exchange order books, with new demand liquidity blocks emerging at $62,450, which prevented further price increases at the time of writing.
Key Takeaways for Investors
Michael van de Poppe, founder and CEO of trading firm MNTrading, highlighted the significance of the $62,000 level, suggesting that breaking it would indicate continued market recovery. He also noted substantial capital inflows into U.S. spot Bitcoin ETFs, pointing to a likely breakout.
- Monitor Fed meetings for future rate cut announcements.
- Keep an eye on liquidity shifts and demand levels on exchange order books.
- Watch for capital flows into Bitcoin ETFs as an indicator of market sentiment.
Van de Poppe added, “Given the large influx into the ETF space last week, we are likely to experience this breakout.”
In summary, the recent rate cuts by the Federal Reserve have fueled an impressive Bitcoin rally, reaching a milestone of $62,000. Investors and analysts are closely observing market trends and liquidity levels to gauge future movements in the cryptocurrency market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-climbs-to-62000-as-fed-cuts-rates