As a seasoned crypto investor with a decade-long journey through the digital asset wilderness, I must say that the recent surge of Bitcoin (BTC) to over $76,000 has been nothing short of exhilarating. Having witnessed the infamous Mt. Gox debacle and the infancy of blockchain technology, it’s awe-inspiring to see BTC not only recover but thrive in today’s complex economic landscape.
Bitcoin (BTC) circled $76,000 on Nov. 8 as “high leverage liquidity” formed around spot price.
Bitcoin embraces Fed rate cut with trip toward $77K
As an analyst, I observed a moderate increase in Bitcoin’s price based on data sourced from both CryptoMoon Markets Pro and TradingView. The gains largely persisted post the daily market closure.
Today’s events followed a pattern reminiscent of yesterday, as a sudden surge occurred during the stock market trade on Wall Street, causing new record highs of nearly $77,000 on Bitstamp to be reached.
As an analyst, I found the anticipated 0.25% decrease in interest rates by the U.S. Federal Reserve introducing a degree of volatility into the market.
Following the recent gathering at the Federal Open Market Committee (FOMC), Chair Jerome Powell stated that the potential dangers affecting the committee’s twin objectives of managing inflation and employment are approximately equal.
In simpler terms, “Lately, it appears the economy is still growing steadily. Compared to earlier this year, job market situations have become slightly more lenient, and the unemployment rate has increased a bit but still stays relatively low,” he explained in his written speech.
“Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.”
According to CryptoMoon’s report, there was no doubt among market participants about the Federal Reserve’s future actions. On November 8th, as indicated by data from the FedWatch Tool of the CME Group, it was widely expected that a 0.25% reduction in interest rates would be implemented at the FOMC meeting scheduled for mid-December.
In their analysis, The Kobeissi Letter suggested that the Federal Reserve’s shift in approach towards interest rates might not be secure if there was an uptick in persistent inflation indicators.
In the end, we anticipate adhering to long-term inflation predictions that haven’t risen significantly as of now, according to their discussion on X.
“However, if these do begin rising, as they now stand at 2.1%, we believe the ‘Fed pivot’ would be at risk. This is a big IF, but anything is possible as we head into 2025.”
“High leverage liquidity” risks BTC price squeeze
Meanwhile, Bitcoin seemed unfazed by the intricate details of the broader economy, reaching a record high and setting a new record for its highest daily closing price.
At the moment of writing, Bitcoin (BTC) against the U.S. dollar had climbed a substantial 8% over the past month. Moreover, the fourth quarter has seen a robust increase of approximately 19.6%, according to data from our tracking tool, CoinGlass.
Additionally, the analysis by CoinGlass showed that liquidity was being accumulated significantly on both sides of the trading price, indicating a high volume of orders on the exchange platforms.
The platform suggested on its X account that ‘high-risk liquidity’ might be at play now, advising that abstaining from trades could be the most prudent approach in the present market conditions.
CryptoMutant, a well-known trading account, forecasts a small price increase prior to this heated market experiencing a correction, as they analyzed the liquidity changes.
“In case of correction, the 72,600 level must hold to keep the sentiments positive.”
Trader CrypNuevo foresaw a possibility for a “forced buying” event – a chain reaction of Bitcoin long positions being liquidated – prior to the end of the weekly market cycle.
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2024-11-08 11:25