Cryptocurrency Market Update: Bitcoin Nears $64,000 Amid Rate Cut Speculation
On August 26, the cryptocurrency market experienced slight fluctuations as Bitcoin (BTC) and Ethereum (ETH) recorded minor declines to $63,650 and $2,730, respectively. This adjustment followed a weekend surge where both cryptocurrencies approached $65,000 and $2,900, influenced by remarks from U.S. Federal Reserve Chair Jerome Powell regarding potential interest rate cuts.
During his speech at the Jackson Hole Economic Symposium, Powell indicated that "the time has come" to lower the Fed funds target rate, suggesting that the risks of inflation have lessened. He also stated that the Fed does not foresee further deterioration in labor market conditions, hinting at a possible rate cut in the upcoming policy meeting, which would be the first in over four years.
As of 3:07 PM IST, Bitcoin was trading at $63,650, down 0.34%, while Ethereum saw a 0.74% decline to $2,730. The CoinDCX Research Team noted, "The overall crypto market reacted positively to Powell's comments on potential rate cuts, enhancing market sentiment. Technically, Bitcoin remains bullish on higher time frames but neutral on lower time frames, with key support around $58,000 and resistance at $65,500."
Edul Patel, CEO of Mudrex, commented on the weekend's momentum: "Bitcoin surged following Powell's hints at a potential rate cut in September. Coupled with positive sentiment from Robert F. Kennedy Jr.'s pro-crypto stance, Bitcoin reached $64,000. The next resistance level is at $65,600, with support around $63,600."
The global cryptocurrency market cap saw a slight decrease of 0.3%, settling at approximately $2.24 trillion over the last 24 hours. Other significant cryptocurrencies, including BNB, XRP, Cardano, Polkadot, Polygon, Litecoin, and Uniswap, experienced declines of up to 3%. In contrast, Solana, Dogecoin, Tron, Toncoin, Avalanche, and Chainlink recorded gains of up to 4%.
According to CoinMarketCap data, the total volume of stablecoins reached $46.3 billion, accounting for 91.5% of the total crypto market's 24-hour volume. During this period, Bitcoin's market cap fell to $1.258 trillion, with a dominance of 56.21%. BTC's 24-hour trading volume also decreased by 0.4% to $20 billion.
Ryan Lee, Chief Analyst at Bitget Research, highlighted crucial factors to monitor this week: "The trends in U.S. capital markets and the inflow and outflow of BTC ETFs will be pivotal. If BTC ETFs continue to see net inflows, Bitcoin could stabilize around $64,000; otherwise, a dip may occur."
(Disclaimer: The recommendations, suggestions, views, and opinions expressed by experts are their own and do not reflect the views of the Economic Times.)
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