Bitcoin touches $61K amidst FOMC’s September rate cut
The Federal Reserve's Open Market Committee (FOMC) has disclosed the eagerly awaited details of its meeting held on July 30-31.
The documentation cleared any uncertainties regarding rate reductions in September, with an overwhelming number of Federal Reserve leaders concurring that inflationary pressures have subsided.
Such financial updates frequently ignite fluctuations in the cryptocurrency arena. Leading digital currencies, based on market value, experienced minor volatilities, including Bitcoin surpassing the pivotal $60,000 mark.
According to the specifics from the late July gathering, a significant majority of Fed members are aligned on decreasing interest rates in the upcoming September convening. A few participants even expressed their readiness to endorse a reduction of 25 basis points during the July assembly.
These officials also observed that despite the high inflation rates, there has been a noticeable decrease, aiming towards the 2% objective. Moreover, other economic metrics, like the job market, showcased resilience.
This adjustment signifies the Fed's first departure from fiscal tightening strategies since the year 2020.
Investor sentiment on the CME FedWatch Tool mirrors this stance, with 69% forecasting this exact rate drop. Meanwhile, 30% are predicting a more aggressive cut of 50 basis points.
Bitcoin witnessed a 2.6% uplift, reaching $61,189, before slightly regressing to $60,890.81 at the moment of reporting. According to CoinMarketCap, BTC's trading activity surged by 26%, fueled by growing interest in the cryptocurrency.
The increase is attributed to a surge in purchasing momentum, as indicated by the Chaikin Money Flow (CMF) index.
Currently, the CMF index positioned itself in a positive domain, witnessing a notable rise on August 22, aligning with the release of the FOMC's minutes.
However, the upward trend appears fragile, as suggested by the Awesome Oscillator (AO). The AO recorded positivity on the hourly chart and transitioned to green at the current moment.
Although this signifies an upward trajectory, further validation is necessary to ascertain its vigor.
Moreover, Coinglass data depicted an almost $2 billion elevation in Open Interest, escalating from approximately $30 billion on August 21 to $32 billion presently.
Bitcoin's principal resistance is forecasted to be within the $64K-$66K bracket, as a substantial portion of transactions occurred at these figures, according to IntoTheBlock measurements. Hence, a wave of sellers is expected as BTC nears these levels.
