Bitcoin enthusiasts push to key BTC price level as the US Federal Reserve pours signal over interest rate cut.
The Bitcoin BTC $61,518 tickers down $1,000s opened through $62,000 after the Wall Street Aug. 23 as the United States Federal Reserve moved to introduce the first interest rates since 2019 cuts.
BTC price volatile as Fed’s Powell says policy should “adjust”
Information from ForksDaily Markets Pro and TradingView depicted new local BTC price tags at $62,323 on Bitstamp.
Sharemarkets again cheered confirmation from Fed head Jerome Powell that rates were now set to go down.
“It is time frankly to bring policy into alignment,” he said during a speech at the annual Jackson Hole symposium.
An event that had been closely viewed by the markets for signs of policy easing signals saw a dovish Powell promise an ‘appropriate unwinding of policy tightening while not coming with a clear timeline as to when the cuts will start.
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Controlling for the current level of our policy rate provides ample buffer to counter any risk that we may encounter such as the risk of further deterioration in labor market conditions much as we do not want that, the statement went on.
Jobs had become one of the biggest topics of discussion during the week after a flash downgrade displayed the number of vacancies for the twelve months to March 2024 being reduced by 818000.
The most recent update of the FedWatch Tool of CME Group meanwhile noted that markets are expecting a 0. Say, for instance, a 25% rate cut at the Fed’s next meeting at the end of September.
In response, Bitcoin market commentators were entirely bullish.
“Powell goes full dove,” trader, analyst, and podcast host @wolf decreed in a post on X, along with Powell quotes.
Take for example what Arthur Hayes, the former CEO of crypto exchange BitMEX, said when he heralded “up only time for crypto. ”
Simple low-timeframe movements was described by popular trader CrypNuevo where he said: “$BTC liquidations to the upside getting hit and a long wick forming”.
Bitcoin traders up liquidity games
The most recent information from the monitoring resource CoinGlass captured movements of liquidity between exchange order. It showed a new block of ask liquidity coming in at $62,450 preventing price from going up any further at the time of writing.
$62k however, continued to be the crucial level of essential, at which bulls needed to hold with enough volume to reverse lower timeframes support to bullish.
Indeed, Michaël van de Poppe – the founder and CEO of the MNTrading – asserted in his latest X analysis that ‘Bitcoin is still struggling at this critical breakout If Bitcoin goes through $62K, the sign would be there for the markets to keep on rallying this week.’
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Van de Poppe also went on to say that given that there was an inflow of capital to the US spot Bitcoin exchange-traded funds (ETFs) in the previous week, such a scenario was “likely. ”
“We’ll likely have that breakout, given the massive inflow we’ve seen in the ETF the past week” he said.
Other sources such as United Kingdom based Farside Investors estimated the cumulative net ETF Inflows for the first four days of the week at $ 250 million.