- Bitcoin Surpasses $62K, the crypto market was also given a boost after the Federal Reserve decided to cut interest rates in the United States that for the first time since 2019.
- As with most other digital currencies, the $62,000 mark has flipped to a strong resistance point in Bitcoin’s aftermarket, which is more unfavorable to speculators and technicians.
- The former CEO of BitMEX Arthur Hayes posted, “Up only time for crypto. ”
- The next Fed meeting is scheduled for end of September and expectations are that it will again deliver a 0. 25% rate cut.
Bitcoin Surpasses $62K after the Wall Street open on August, 23 2024. It was expected that the cryptocurrency market would experience an exciting day after the United States Federal Reserve’s emerged from its meeting with an unexpected move to lower interest rates in the country for the first time since 2019. But that is for the past, it is time to look deeper into what happened, and based on the analysts’ opinions, what might occur to Bitcoin and the overall crypto market in the nearest future.
The role of the Federal Reserve and its latest unexpected decision in the bitcoin market
Market interest is roused by the Fed rate cut
When the Federal Reserve cut an interest rate, there was a shot of energize for crypto market. This annual change was rather unanticipated and had rather profound consequences; it was the first time since 2019. Comments from Fed Chair Jerome Powell that he made during the Jackson Hole symposium suggested a more restrained outlook: “The time has come for policy to evolve “ Combined with lower number of job openings and general economic instability, this created the premise for optimistic outlook for risk assets such as Bitcoin.
The Fluctuations in Bitcoin Price due to the Speech of Powell
After Powell’s speech, Bitcoin rose to a local Bitstamp high of $62,323. The market had a signal and as expected traders quickly moved to the long side to take advantage of the expected up move. Technicians have observed that the increase in the price and subsequent declines soon after Powells’ speech showed that market depends on Macroeconomic fundamentals sooner than anything else.
Cryptocurrencies weekly analytics – Bitcoin bulls look at the $62,000 mark.
The Significant of the $62,000 Level
The high of $62,000 has now been established as a firm resistance level in Bitcoin’s aftermarket. This price has dominated the traders’ and the analysts’ radar screen as the top-side level that, if broken, would provide the signal for propping up a higher price for Bitcoin. Michaël van de Poppe, an experienced founder, and CEO of MNTrading also noted that ‘Bitcoin is still at a decisive level. ’ He go on to post that if ‘BTC goes past $62K, it will be the signal for the markets to go further up this week’.
Correlation between Liquidity Games and Fluctuations in the Market
Order book depth has changed slightly as evidenced by the latest data I obtained from CoinGlass regarding exchange order books. An effective portion of ask liquidity at $62,450 was added to reduce the chance of the Bitcoin price rising at the time. This kind of positioning by traders is quite rampant; this I see as proof that traders rarely allow such levels to drag them up while, on the other hand, there is still massive selling at such a level.
Experts Forecast ‘Up Only’ for Crypto
Flipping the Light to Green: The Market Turns Bullish
In fact, speaking of the opinions expressed by the active participants of the Bitcoin market, the sentiment has become rather bullish in the wake of the Fed’s decision. Indeed, Scott Melker, the “Wolf of All Streets, could not have captured the market sentiment any better when he tweeted “Powell goes full dove. “ This dovishness from the Federal Reserve appears to have given the green light to go ‘risk on’ with former BitMEX CEO Arthur Hayes writing, “Up only time for crypto.
The function of ETFs in the future of Bitcoin
More oil on the bullish fire is the inflows of capital into spot US Bitcoin exchange-traded funds (ETFs) that have recently been launched. Net ETF inflows were over $250 million in the first four days of the week alone, as investors tracked by Farside Investors, an investment management company from the United Kingdom, established. This large amount of capital mobility implies that institutional investors are also preparing for a probable explosion in Bitcoin’s price.
From the flow of events in the global bitcoin and crypto market, what lies ahead?
Possible Situations and Important Levels to Monitor
Now, as Bitcoin starts trying the $62,000 level, the market is expecting two outcomes. If Bitcoin can jump above this level and make it a support level, a significant further up move towards all-time highs could occur. Although in case of Bears making their comeback on Bitcoin price and the resistance being maintained, a retreat to new lower support levels may occur.
Awaiting the next meeting with the Fed
All attention is now focused on the next meeting of the Fed in late September, at which a 0.25% rate cut is now anticipated in the current month by the financial markets, as per the CME Group’s FedWatch Tool. Indeed, any clues or indications about the future changes of the monetary policy of the USA will unquestionably exert a rather significant pressure on Bitcoin and on the cryptoeconomy as a whole.
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