Sep 25 2024: Bitcoin’s price climbed on Wednesday, benefiting from sustained optimism surrounding global monetary easing, which attracted more investment into riskier assets. The world’s largest cryptocurrency is now approaching a critical breakout point.
A series of stimulus measures from China contributed to positive market sentiment, as investors also prepared for interest rate cuts by the Swiss and Swedish central banks later this week. This follows the U.S. Federal Reserve’s first rate cut since 2020.
By 00:47 ET (04:47 GMT), Bitcoin had risen by 1.9% to reach $64,253.3.
Bitcoin Approaches Key Resistance at $65K
Bitcoin has staged a robust recovery over the past two weeks, largely driven by increased risk appetite after the Federal Reserve’s significant rate cut. According to Citi analysts, the Fed has initiated an easing cycle that could reduce rates by 125 basis points by the end of 2024. Goldman Sachs anticipates the Fed will continue to cut rates by 25 basis points at each meeting between November 2024 and June 2025.
Coindesk noted that Bitcoin would need to break through its August high of $65,000 for further upward momentum, although the cryptocurrency has struggled to hold levels above $65,000 since its record high in March.
Despite the potential for lower interest rates to encourage more investment into speculative assets like cryptocurrencies, Bitcoin has underperformed compared to the stock market, with Wall Street reaching record highs after the Fed’s decision.
Sentiment around crypto remains somewhat muted, particularly as retail interest has declined this year. Additionally, uncertainty surrounding regulations, especially in light of the approaching U.S. presidential election, has limited capital flows into cryptocurrencies.
Broader Crypto Market Sees Modest Gains; Interest Rate Developments in Focus
Altcoins also saw price increases in line with Bitcoin, although gains were modest overall.
Ether, the second-largest cryptocurrency, rose by 0.2% to $2,626.93. Among altcoins, SOL and ADA led the way, rising by 3.7% and 7%, respectively. XRP gained 1%, while MATIC saw a slight increase.
Meme token DOGE climbed by 2.3%.
Investors are now awaiting further guidance on global interest rates. Sweden’s Riksbank is expected to cut rates later on Wednesday, with the Swiss National Bank anticipated to follow suit on Thursday.
In the U.S., all eyes are on Federal Reserve Chair Jerome Powell’s speech on Thursday, as well as the PCE price index data, the Fed’s preferred measure of inflation, which is due on Friday.
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