What’s next for Bitcoin after FOMC meeting?
Bitcoin Surges to $61K After Fed's 50 Bps Cut
Hey friends!
Big news from the FOMC meeting—after 4 years, the US just slashed rates by 50 bps! What’s the impact on crypto? Let’s dive into the market shake-up!
Current Market Analysis
Market Cap: The total market cap currently stands at $2.7 trillion.
Volume: Trading volume is near $90 billion, with a significant pump of 20.5% in volume recently.
Inflows: There's no data available since midnight, but yesterday we saw an inflow of 1512 BTC.
Fear and Greed Index: The index is neutral at 49.
Sentiment: The sentiment is leaning towards buying, and the heat map shows an optimistic market.
Key Cryptocurrency Prices
Bitcoin: Currently up 3.04%, priced at $62,125 at the time of recording.
SOL price is up by 1.5% in the last 24 hours
Important Points from the FOMC Meeting
What Did Powell Say? Federal Reserve Chairman Jerome Powell made some crucial statements during the meeting. Here’s a quick summary:
US Economy Is Strong: Powell emphasized that the US economy is in good shape, which is a positive sign after a long period of uncertainty.
Rate Cut Signals Confidence: The 50 bps rate cut indicates that the Federal Reserve is confident about the recovery.
Next Rate Cuts: Powell hinted that further rate cuts will be decided on a meeting-by-meeting basis. However, there’s a high likelihood of another rate cut before the year ends.
Election Influence: US elections are around the corner, and this could lead to one more rate cut. Historically, governments prefer avoiding negative market sentiment during election times.
Historical Context of Rate Cuts
In the past, a 50 bps rate cut has occurred twice—during the dot-com bubble and the 2007-2008 financial crisis. Both times, the market faced significant downturns after the cuts.
Dot-com Bubble: A similar rate cut happened, which led to market chaos.
2007-08 Financial Crisis: The same thing occurred, followed by a market crash.
While this might seem alarming, we need to consider the election factor and how it might shape the markets in the coming months. Historically, short-term market movements after such cuts can be volatile, but long-term recovery is possible.
Will Bitcoin’s Price Surge?
If we look at Bitcoin's price action, it has performed well in the past two weeks, moving from $54,000 to $62,000. Two consecutive green weekly candles signal strength in the market. However, we need to see a proper close above $65,000 for a more concrete move.
What to Watch:
Weekly Close: The weekly candle needs to close above key resistance for a potential rally.
FOMC Impact: The real market movement usually happens a day or two after the FOMC meeting, so we expect clearer signals soon.
Upcoming Key Events
US Elections: The upcoming elections could play a major role in the next rate cut, potentially creating volatility in the market.
Other Crypto Updates
MicroStrategy Transfers Bitcoin: MicroStrategy moved 4,922.697 BTC to three new unmarked addresses in four separate transactions, totaling 360.251 BTC, 2,026 BTC, 395.446 BTC, and 2,141 BTC.
Convertible Note Offering: MicroStrategy recently announced an $875 million private offering of convertible senior notes, upsized from an earlier offering of $700 million.
Current Bitcoin Holdings: MicroStrategy now holds 244,800 BTC, acquired at an average price of $38,585 per Bitcoin, totaling around $9.45 billion.
Final Thoughts
The market's next big test is coming soon—two more rate cuts and the US Presidential election could cause major shifts! Will Bitcoin soar or stocks crash? Get ready for big moves!
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