Following a short dip that spanned three weeks, Bitcoin has risen above $116,000 on Friday, primarily due to the speculations of a Fed Reserve interest rate cut. According to experts, raising inflation and weaker job opportunities are forcing the Fed towards growth support rather than price stability.
Ethereum also witnessed an uptrend, surging above $4,550 with 3% increase this week. This has increased the investors’ optimism in other prominent cryptocurrencies, paving the way for an altcoin bull run. The entire crypto market cap has crossed $4.01 trillion, with factors such as ETF momentum, reserves fuel, and technical breakout influencing, along with the Fed rate cut.
Fed Plans for Three Rate Cuts This Year, Investors Expect Bitcoin to Reach New Heights
The Federal Reserve is expected to cut the short-term rates three times this year, starting from next week. The policy rate will likely be reduced from 4.25%-4.50% by a quarter of a percentage point on September 16-17 at the central bank meeting, and the same is expected at October’s meeting.
Jerome Powell, the chairman of the Federal Reserveindicated that the marked slowdown in job growth and increasing downside risks to employment will result in a potential interest rate cut, but no final decision has been made. Meanwhile, Donald Trump urged Powell to lower the rate immediately.
“Too Late” must lower the RATE, BIG, right now,” Trump posted on Truth Social. He also criticized Jerome Powell by saying that Powell is a total disaster who doesn’t have a clue. Similar to Trump’s Bitcoin reserve strategy, retail investors are expected to transfer their funds to safe-haven crypto assets after the implementation of Fed cuts.
Historically, rate cuts have been associated with significant Bitcoin price surges, with the primary example being the rise to $60,000 in 2021, continuing the 2020 Covid-era boost. While rate cuts historically lower the opportunity cost of holding non-yielding assets like Bitcoin and can boost its price by increasing market liquidity, recent studies by blockchain economy experts suggest the chance for a reversal.
Bitcoin’s Current Market Scenario
Bitcoin is 2.5% up this week, trading above the $115K mark. It moves above its 30-day SMA ($113,156) with RSI 14 at 58 (neutral to bullish). It is trading above the 200-day simple moving average and has 15 green candles in the past 30 days.
The overall sentiment of BTC is bullish. Rate cuts are expected to weaken the dollar, continuing the bullishness and greed in the coming days.
Fear & Greed Index: 57 (Greed)
Market Sentiment: Bullish
Supply Inflation: 0.85% (Low
Dominance: 57.10%
Volatility: 2.88% (Medium)
Also Read: XRP Price Prediction 2025-2050: Short Term and Long-Term Predictions
Ethereum (ETH) Current Market Scenario
Ethereum has been trading above the 200-day simple moving average, outperforming Bitcoin and other prominent altcoins. It has exhibited only 14 green candles in the last 30 days, providing a bullish impression. More technical details follow.
Fear & Greed Index: 57 (Greed)
Market Sentiment: Bullish
Supply Inflation: 0.32% (Low)
Dominance: 13.61%
Volatility: 3.30% (Medium)
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