In a move that could signal a bullish shift for Bitcoin (BTC) and the broader cryptocurrency market, the Federal Reserve (Fed) announced a 25 basis points (bps) interest rate cut, bringing the new rate range to 3.5% to 3.75%. Bitcoin Poised To Surge Toward $100,000? Kevin Hassett, the White House economic adviser and a leading candidate to become the next Fed chair, commented to the Wall Street Journal CEO Council that there is “plenty of room” for additional interest rate cuts. He stated, “If the data suggests that we could do it, then — like right now, I think there’s plenty of room to do it.” Hassett, who is President Donald Trump’s preferred choice for the Fed chair position after Jerome Powell’s tenure concludes, has been critical of Powell for being “too late” in lowering rates. Related Reading: Crypto Market Structure Talks: Senator Lummis Addresses Latest Legislation Plans While the last rate cut in October had minimal impact on the Bitcoin price, analyst Michael van de Poppe believes that the current rate cut could significantly benefit the cryptocurrency. He characterized it as a “great move” for Bitcoin and noted that a breakout above $92,000 might be indicative of future bullish momentum. Van de Poppe expressed optimism about Bitcoin’s ability to maintain the support level between $91,500 and $92,000, suggesting that if it does, there could be a pathway for Bitcoin to approach the $100,000 mark. Can BTC Avoid Historical 10% Decline? Market expert Ash Crypto pointed out that historically, each of the last four times the Fed slashed rates by 25 bps, Bitcoin experienced a 5% to 10% decline shortly thereafter. Despite this pattern, Ash noted that the current market setup differs from previous scenarios, suggesting that different dynamics could be at play. Related Reading: Ethereum Price Climbs Toward $3,300 For The First Time Since November: What’s Driving The Surge? Several positive factors underpinning this optimism include the conclusion of quantitative tightening (QT) after a three-year period. Should Powell hint at the possibility of quantitative easing (QE) in his forthcoming remarks, it could spur a further bullish trend in the market. Additionally, with this being the third rate cut, Ash asserted that there is potential for increased liquidity to flow back into the markets, which historically benefits risk assets like Bitcoin. Featured image from DALL-E, chart from TradingView.com
As the market awaits the Federal Open Market Committee (FOMC) meeting, Ethereum (ETH) is attempting to hold the $4,000 area as support. Despite the volatility, some analysts have predicted that the King of Altcoins may soon start its long-awaited price discovery rally, while whales pour millions into the cryptocurrency. Related Reading: Bitwise CIO Predicts Solana Staking ETF Will Be ‘Huge’ As First Day Volume Hits $56M Ethereum Price Set For $8,000 On Wednesday, Ethereum fell below the $4,000 level once again, falling to a two-day low of $3,926. After a massive Q3 rally, the King of Altcoin has struggled to hold the crucial psychological barrier as support and has been unable to reclaim the $4,200 resistance for most of October. Earlier this week, the cryptocurrency retested the key resistance level after surging 7% over the weekend, but retraced on Tuesday alongside the rest of the market. Amid this performance, some analysts suggested that ETH will likely experience more volatility, fueled by the Federal Reserve (Fed)’s interest rate cut announcement. Daan Crypto Trades noted that ETH’s big test is around its previous cycle highs near the $4,100 level. To the trader, “this is the level to break and hold if the bulls want to get back to the highs in due time.” On the contrary, a new rejection from this area could send the price to retest $3,800 and turn the level into a major resistance in the larger timeframes. Nonetheless, Crypto Yhodda stated that Ethereum is “getting ready for the last euphoric run,” as its performance resembles its 2021 price action, when the altcoin recorded a massive price discovery rally after breaking out of its four-year consolidation. Similarly, analyst Crypto Jelle asserted that shakeouts at key support levels are expected, adding that the cryptocurrency’s rally “still looks very promising.” Jelle highlighted an 18-month bullish megaphone formation on Ethereum’s chart, which it broke out of during the Q3 rally. The analyst emphasized that ETH is still holding the previous highs and the breakout level as support, suggesting that a “hated rally” to the $8,000 target could happen soon. Whales Bet Big On ETH Online reports highlighted that large-scale investors have been on a buying spree despite the altcoin’s pullback. As reported by NewsBTC, Santiment data showed that whales added 218,470 ETH in the past week, signaling that major investors are gradually re-entering the market. Meanwhile, on-chain analytics platform Lookonchain revealed that whales continued to buy ETH over the past 24 hours. Notably, two newly created addresses received a total of 33,948 ETH, worth $135 million, from digital asset prime brokerage FalconX on Wednesday morning. According to Lookonchain, the two addresses likely belong to BitMine, the largest Ethereum-based treasury company, which recently unveiled another 27,316 ETH purchase, worth $113 million. Related Reading: Solana, Litecoin, Hedera ETFs Ready? Experts Expect Tuesday Launch Despite Goverment Shutdown In a Monday X post, BitMine provided its latest holdings update, which now surpasses the $14.2 billion mark. As of October 27, the company holds 3,313,069 ETH, 192 BTC, an $88 million stake in Eightco Holdings for its “Moonshot” initiative, and unencumbered cash of $305 million. A month ago, BitMine revealed it had reached the 2% milestone of its goal to own 5% of Ethereum’s total supply. With the recent purchases, the company has achieved 55% of its goal, currently holding 2.75% of ETH’s supply. As of this writing, ETH is trading at $3,990, a 3.5% drop in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Crypto analyst CasiTrades has predicted that the XRP price could still crash to $1.4 in the final wave of this downtrend. This comes despite bullish catalysts such as the Fed rate cut, which could lift the altcoin to new highs. Analyst Predicts XRP Price Crash To $1.4 In an X post, CasiTrades stated that exchanges are aligning toward their .618 retracements, with Binance showing a crash to between $1.35 and $1.46 for the XRP price. She noted that this next wave down would complete the macro Wave 2 correction, setting the stage for the next Wave 3 impulse that could send XRP toward $6.50 or $10. Related Reading: Technical Analysis Suggests XRP’s Playbook From 2017 Could Repeat In 2025 This came as the analyst remarked that the XRP price was at a major decision point, with the price continuing to test the Wave 4 highs. She noted that this resistance is making another wave down a possibility. To invalidate the move down, CasiTrades stated that XRP needs to break and hold above $2.82 on Binance. However, so far, the XRP price hasn’t done so, with CasiTrades noting that the price is still ranging between support and resistance. She explained that this leans toward this being a Wave 4, with the altcoin one final move lower before the next macro impulse. The analyst ruled out a V-shaped recovery, noting that price typically breaks through resistance immediately and decisively, which is not happening with the current price action. She further remarked that the hesitation suggests that selling pressure isn’t fully exhausted for the XRP price. However, CasiTrades assured that the deeper support levels aren’t a reason to panic, as they are high conviction accumulation zones. Meanwhile, the analyst highlighted a discrepancy in the price action on different exchanges. She noted that the XRP price on Binance wicked to $0.77 during the $19 billion liquidation event, while on Coinbase, XRP never reached its .618 retracement level. CasiTrades then reiterated that until $2.82 breaks, the price action favors one final wave down before the next major move up. XRP’s Bull Run Isn’t Over Crypto analyst Egrag Crypto has assured that the bull run isn’t over for the XRP price, despite predictions that the top may be in. He stated that as long as XRP holds above $2.20 and $1.97 as monthly closes, then there is no structural break. He also believes that the altcoin and other risk assets are about to “roar.” Related Reading: Crypto Analyst Maps Out The XRP Price Roadmap From $3 To $27 Egrag Crypto noted that quantitative tightening is still active and that Fed rate cuts are just beginning. In line with this, he declared that the last leg up is still waiting to play out. He claimed that cycles don’t end when 50% of traders are cautious, but do when everyone is “drunk on euphoria.” At the time of writing, the XRP price is trading at around $2.6, down in the last 24 hours, according to data from CoinMarketCap. Featured image from Pexels, chart from Tradingview.com
Expectations surrounding possible rate cuts by the Federal Reserve in September are nearing peak levels, especially among crypto investors. Historically, Fed rate cuts have often meant the start of a bull run since it signals to investors to take more positions in risk assets such as Bitcoin and crypto. Thus, with only two weeks left to the next FOMC meeting, votes are already coming in for what the Fed will do and how the crypto market will react. Probability Climbs Above 97% The CME Watch Tool from the CME Group website is now showing the highest probability so far for a Fed rate cut in September. The percentage had fluctuated over the month of August, rising above 92% and then falling back to 75% again as different developments popped up. However, as the market entered the month of September, sentiment has skewed completely toward the positive, and the probabilities have risen drastically. Related Reading: XRP Price Could See 20% Bounce To $3.4 If This Trendline Holds Bitcoinist had reported that the probability had fallen to 75% toward the end of August. But now the figure is back again, reaching the highest level so far, ahead of the FOMC announcement. The Fed Watch Tool now reads a 97.6% chance that the Fed will cut rates this September and trigger another bull run. This figure means that there is now only a 2.4% probability that the Fed would choose to keep rates at the same level as they did the last time. In contrast, there is still a 0% chance that there will be a rate hike this September. In fact, there have not been talks of a Fed rate hike for months now, suggesting that all focus remains on the rate cuts. How The Crypto Market Could React Naturally, a Fed rate cut is bullish for both the stock and crypto markets as it allows investors to take on more risks. This triggers a flow of liquidity into the market, driving up prices rapidly, while also increasing the volatility of the market at the same time. The expectation is that the crypto market could rally off the news, especially as US President Donald Trump has been in support of rate cuts for months now. However, there is also the need to be cautious due to high expectations often leading to dashed hopes. Related Reading: Crypto Analyst Warns 90% Bitcoin Price Crash Is Coming, Here’s When In a report, the on-chain data analytics platform Santiment revealed that social conversations with the words “Fed”, “rate”, and “cut” had risen to the highest level in almost one year. This suggests a lot of bullishness already surrounding the FOMC meeting. But periods like these have often marked the top, leading to a possible “buy the rumor, sell the news” event. If the latter is the case, then it would mean that prices could rise leading up to the FOMC meeting and then crash if the announcement is different from expectations. Thus, it would be wise to be cautious around this period, especially with the expectation of high volatility. Featured image from Dall.E, chart from Tradingview.com
Bitcoin hit a new all-time high (ATH) on August 13, providing a bullish outlook for the leading cryptocurrency. Ethereum has also recorded remarkable gains in the last seven days, bringing it close to its ATH. This development has occurred thanks to macro factors, which are boosting risk-on sentiment. Bitcoin Hits New ATH While Ethereum Records Massive Gains CoinMarketCap data shows that Bitcoin has reached a new ATH of $124,400, surpassing its previous ATH of around $123,091, which it hit just a month ago. Meanwhile, Ethereum is up almost 30% in the last seven days and is now just about 2% away from its ATH of $4,891. With the crypto market boasting this bullish momentum, ETH is expected to reach a new ATH sooner rather than later. Related Reading: Pundit Predicts ‘Near Term’ Bitcoin And Ethereum Prices, There’s Still Room To Run These rallies for Bitcoin and Ethereum have occurred on the back of positive macro developments such as the U.S. CPI data, which has boosted hopes of a September Fed rate cut. The July CPI inflation data came in at 2.7%, which showed that inflation in the country was steady. This reading was also lower than the expected 2.8%. Meanwhile, earlier on, the July job data had suggested that the U.S. labor market was weakening after nonfarm payrolls rose to 73,000, lower than the expected 147,000. Meanwhile, May and June figures were revised to 19,000 and 14,000 from 144,000 and 147,000, respectively. These developments have proven bullish for Bitcoin and Ethereum as the odds of a 25-basis-point (bps) September Fed rate cut have reached as high as 99%, according to CME FedWatch. These odds are now at 95% while there is a 4.2% chance of a 50 bps, which would be more bullish for these crypto assets if it happens. Rate cuts inject more liquidity into the market and boost investors’ appetite for risk-on assets like BTC and ETH. Higher Prices Still Likely For BTC Crypto analyst Ezy said that the Bitcoin price is in the ‘Sign of Strength’ phase, signaling that this is the beginning of a major bullish move after a period of accumulation by whales. The analyst added that the first target in this phase is typically the 1.618 Fibonacci, which is around $130,000. Related Reading: None Of These 30 Bitcoin Bull Market Top Indicators Have Been Triggered Meanwhile, the Ezy stated that the second target is at the 2.0 Fibonacci level, near $145,000, and the final target is around $166,000. His accompanying chart showed that Bitcoin can reach these targets between September and October, around when the monetary easing cycle is expected to begin. At the time of writing, the Bitcoin price is trading at around $122,600, up over 2% in the last 24 hours, according to data from CoinMarketCap. Featured image from Pixabay chart from Tradingview.com
In a rather unseemingly fashion, Bitcoin’s (BTC) journey to a new all-time high at $108,268 was followed by an estimated 17% decline pushing the asset’s price to a local bottom of $92,281. This heavy price decline has been attributed to the recent policy announcement by the US Federal Reserve which adopted another 25 basis point […]
Following the market’s recent pump, the leading cryptocurrencies have seen a remarkable performance. Bitcoin is trading above the $64,000 mark, while Ethereum (ETH) has surged 9% in the last week to consolidate above a key support level. Despite the bullish sentiment, some crypto investors remain cautious about ETH’s performance as the second-largest cryptocurrency faces the next crucial resistance level. Related Reading: Memecoin Sensation Popcat Hits New All-Time High After Surge To $1 Ethereum Consolidates Above $2,600 Ethereum recorded a 13% price jump in the last seven days after the US Federal Reserve (Fed) announced its decision to cut the interest rate by 50 basis points (bps). The bullish momentum propelled the ETH’s price to ranges not seen in a month, triggering a positive sentiment among many investors. Over the weekend, the “King of Altcoins” surged from the $2,300 support zone to the $2,500 mark before reclaiming the $2,600 resistance level as the week started. Since then, the cryptocurrency has hovered between the $2,600-$2,684 price range, momentarily dropping below the key support level on Wednesday afternoon. Nonetheless, Ethereum has faced resistance today after recovering from the recent drop to $2,500. Market analyst Crypto Yapper noted that ETH had been “running into critical resistance on the Daily chart,” as it had been unable to break successfully above the $2,650 mark since Tuesday. This performance worried some investors, who considered that not breaking above this level could hinder the cryptocurrency’s run and send the price toward the previous support zones. However, Ethereum’s price jumped 1% in the last hour to trade above $2,650. As of this writing, ETH exchnges hands at $2,660, recording a 2.1% and 9.3% price increase in the daily and weekly timeframes. ETH To Reach New Highs In October? Crypto Trader Daan highlighted that Ethereum’s price made a higher low (HL) but has not been able to make a higher high (HH) yet. The trader noted that an HH would occur above the $2,820 mark, which was lost over a month ago, and it would signify a trend reversal for the cryptocurrency. This level corresponds with the horizontal level that kickstarted the February-March run to $4,090 after the breakout. Additionally, it coincides with the Daily 200 Exponential Moving Average (EMA) around that area, which makes it “an important level to watch.” A breakout above this mark could further propel ETH’s price toward the $3,000 resistance level. Julien Bittel, Head of Macro Research at Global Macro Investor (GMI), noted that Ethereum’s chart is “looking a lot like a 2023 redux.” Related Reading: Cardano (ADA) Reclaims Top 10 Crypto Spot, Analysts Set New Targets Per the Chart, the cryptocurrency’s current market structure resembles its 2023 movements very closely. A repeat of ETH’s previous bullish trajectory suggests that ETH’s price is about to break out and hit a new all-time high (ATH) mid to late October. Additionally, the chart shows that if it follows the same bullish trend, Ethereum’s price has the potential to reach somewhere between the $10,000 to $20,000 targets by Q1 2025, which would represent a 669% surge from its current price and a 300% jump from its ATH. Featured Image from Unsplash.com, Chart from TradingView.com
As the US economy grapples with rising inflation expectations and scaled-back forecasts for Federal Reserve rate cuts, the Bitcoin market remains buoyant, according to a detailed analysis by Reflexivity Research. With the US CPI headline inflation projected to accelerate to 4.8% by the November 2024 elections, according to Bank of America, conditions are seemingly unfavorable for a loosening of monetary policy. Despite this, the cryptocurrency sector, particularly Bitcoin, appears insulated and optimistic. Bitcoin Unfazed By Delayed Rate Cuts? The bond market now anticipates only three Federal Reserve rate cuts this year, a significant reduction from the earlier forecast of six. The CME FedWatch tool indicates that the majority of market participants do not expect a rate cut to occur before the mid-September FOMC meeting. This adjustment reflects a recalibration of expectations regarding the Fed’s capacity to manage persistent inflation pressures. Amidst these macroeconomic shifts, Ritik Goyal, in a guest post for Reflexivity Research, presents a compelling analysis in his report titled “The Fed is Unable to Cause a Recession. Risk Assets are Yet to Realize This.” Related Reading: Pre-Halving Jitters: Bitcoin Price Briefly Slips Below $60,000 The report argues that, contrary to conventional wisdom, the Federal Reserve’s rate hikes have had unintended stimulative effects on the economy. Goyal elucidates three specific mechanisms through which this phenomenon operates: 1. Increased Government Interest Payments: “Rate hikes raised interest payments by the government to the private sector,” Goyal notes. As the Fed raises rates, it increases the interest burden on the government, which has borrowed extensively during the post-COVID period. With the federal debt-to-GDP ratio exceeding 120%, the doubled interest payments now effectively act as a stimulus, channeling approximately $1 trillion annually to the private sector 2. Direct Subsidy to Banking System: The Fed’s policy adjustments have also led to a redistribution of wealth within the financial system. “Rate hikes raised the Fed’s direct subsidy to the banking system,” states Goyal. This has occurred as the yield curve inversion resulted in the Fed incurring losses on its balance sheet, losses that directly benefit the banking sector, translating to an estimated $150 billion annual subsidy. Related Reading: Bitcoin Displays Bullish Adam And Eve Double Bottom: What It Means 3. Induced Housing Construction Boom: The rate hikes have paradoxically stimulated the housing market. “Rate hikes induced a housing construction boom,” according to Goyal. As higher rates discourage existing homeowners from selling, the only viable option to meet housing demand is new construction, a sector with one of the highest GDP multipliers. Goyal’s insights underline a critical misalignment in the Fed’s current approach against the backdrop of substantial fiscal interventions since the pandemic. “The traditional monetary policy framework is breaking down under the weight of fiscal dominance,” Goyal concludes, suggesting an environment that could favor non-traditional assets like Bitcoin. Echoing Goyal’s findings, crypto expert Will Clemente highlighted the broader implications for cryptocurrencies on X (formerly Twitter), stating, “With debt/GDP as high as it is, we’re in a backwards world where high rates mean interest payments on debt are stimmy checks for people that buy assets—~$1T will be paid out in 2024. Big picture is very constructive for the internet coins.” At press time, BTC traded at $61,173. Featured image from Shutterstock, chart from TradingView.com