- The FOMC minutes for the July 30-31 meeting revealed that a vast majority of Fed officials agreed to an interest rate cut in September.
- Bitcoin briefly reclaimed $61K following the news, as Open Interest surged by nearly $2 billion.
As a seasoned researcher with years of experience analyzing financial markets and cryptocurrencies, I find myself intrigued by the recent developments in both the traditional stock market and the crypto realm. The FOMC minutes revealing a consensus for an interest rate cut in September has sent ripples across the financial world, with Bitcoin swiftly reclaiming $61K following the news as Open Interest surged nearly $2 billion.
In simple terms, the minutes from the FOMC’s significant meeting held on July 30-31 were made public.
The minutes clarified beyond any question that the Federal Reserve is unlikely to lower interest rates in September, as the majority of its members believe inflation has subsided.
Economic data often prompts fluctuations in crypto prices. Many of the top 10 cryptocurrencies, including Bitcoin, exhibited brief periods of instability. Notably, Bitcoin surpassed the significant price point of $60,000.
First Fed rate cut since 2020
According to the minutes from the July 30-31 gathering, many Federal Reserve officials favor reducing interest rates in September. Additionally, some participants were open to implementing a 0.25% reduction during the July meeting as well.
The minutes read,
“Most people noticed that, given the current trend of incoming data, it might well be suitable to loosen policies during the upcoming meeting.”
Officials added that although inflation still hovered at a relatively high level, it had dropped substantially and was moving towards its goal of 2%. Additionally, other key economic factors like the job market were also robust.
The incision signifies the initial occasion when the Federal Reserve has forsaken tight monetary policies since the year 2020.
Approximately two-thirds (69%) of investors using the CME FedWatch Tool share the expectation for an equal reduction, while about one-third (30%) foresee a more substantial decrease by 50 basis points.
Bitcoin jumps on “dovish” minutes
Bitcoin experienced a 2.6% increase, reaching a trade price of $61,189, before subsequently dropping to $60,890.81 at the point of this writing. According to CoinMarketCap statistics, trading volumes for BTC surged by 26%, indicating heightened market interest in the cryptocurrency.
The spike comes amid a rise in buying pressure, as seen in the Chaikin Money Flow (CMF) index.
At the point when I checked, the Currency Movement Factor (CMF) was in a favorable position, experiencing a substantial surge on the 22nd of August. This upward trend aligns with the release of the FOMC minutes.
Nevertheless, the uptrend remained weak, as seen in the Awesome Oscillator (AO). The AO was positive on the hourly chart and also shifted green at press time.
While this indicates an uptrend, more confirmation is needed to confirm its strength.
Read Bitcoin’s [BTC] Price Prediction 2024-25
As a crypto investor, I’ve noticed an impressive surge in Open Interest over the past few days. According to data from Coinglass, the Open Interest jumped from approximately $30 billion on August 21st, to a staggering $32 billion as we speak. This growth is certainly something worth keeping an eye on!
Bitcoin’s key resistance continued to lie at the $64K-$66K range, as a majority of coins were bought at these levels per IntoTheBlock data. Therefore, sellers might emerge once BTC approaches this price range.
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2024-08-22 16:39