Bitcoin Soars Over $64,000 as the Fed May Cut Interest Rates – Is There About to Be a New High?

Posted by cryptonews Crypto News August 25, 2024 2.7k Views

The oldest and most valuable cryptocurrency in the world, Bitcoin (BTC), maintained its upward trend, crossing $64,500 and hitting an intraday high of $64,879. This bullish trend has sparked renewed investor optimism.

After Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole conference earlier, the price of Bitcoin jumped above $64,000. Powell stressed the need for changes to policy while making passing references to possible interest rate reductions.

Powell indicated it might be time for a change in monetary policy and expressed confidence that inflation is heading toward the Fed’s 2% target.

Rate reductions’ timing and speed, however, would be determined by upcoming economic data and the overall state of the economy.

Additionally, $36 million was invested in Bitcoin ETFs on Friday, which raised investor confidence and helped to drive up the price of BTC. This inflow demonstrated robust market demand and strengthened the bullish momentum.

Bitcoin Jumps Over $64,500 After Powell Hints at Rate Cuts

The Jackson Hole conference speech by Federal Reserve Chair Jerome Powell caused a significant spike in the price of cryptocurrencies.

Powell underlined the need for policy adjustments based on impending economic data and made passing references to potential interest rate reductions.

Because of the increased investor confidence brought about by this dovish outlook, Bitcoin surged by almost 5% yesterday, broke through $63,000, and is still rising above $64,500 today.

In an effort to fight inflation, the Fed has been raising interest rates since March 2022. Powell’s suggestion of possible rate cuts, however, portends a change in policy that may favor riskier assets like Bitcoin.

Lower interest rates promote investment in assets like cryptocurrencies, lower borrowing costs, and increase liquidity.

According to FRNT Financial analysts, a declining value of the dollar along with anticipated rate reductions could drive Bitcoin to a record high.

  • Bitcoin gains momentum, surpassing $64,500.
  • Lower interest rates could drive further crypto market rallies.

Bitcoin ETFs Surge with $252M Inflows as Ethereum ETFs Face Continuous Outflows

The cryptocurrency ETF market this week has demonstrated the sharp differences between Ethereum and Bitcoin. After seven straight days of gains, Bitcoin ETFs have seen robust and steady inflows.

Monday saw $62.1 million in net inflows for the week, driven primarily by FBTC and IBIT from Fidelity and BlackRock.

By August 24, net inflows had topped $252 million overall, with major contributions from BlackRock, ARK 21Shares, and Grayscale Mini.

Ethereum ETFs, on the other hand, have seen consistent withdrawals all week. Beginning on Monday with $13.5 million in withdrawals, primarily due to Grayscale’s ETHE losing $20.3 million, the pattern persisted, resulting in significant net losses by the end of the week.

  • Bitcoin ETFs see $252 million in inflows.
  • Ethereum ETFs struggle with significant outflows.

The stronger market position of Bitcoin is highlighted by this divergence, which boosts investor confidence and fuels the cryptocurrency’s continuous price increase.

Bitcoin Eyes $65,400 as Bullish Momentum Builds Above $63,500

Doji candles have formed above the $63,500 mark, suggesting that Bitcoin (BTC/USD) may be on the verge of rising. Based on this pattern, bullish momentum may push the price closer to $65,400 in the near future.

Immediate support, or roughly $63,650, acts as a safety net against any possible short-term declines.

This positive outlook is further supported by technical indicators. At 68, the Relative Strength Index (RSI) shows significant buying pressure without going into overbought area.

Bitcoin Price prediction

Furthermore, at $63,200, the 50-day Exponential Moving Average (50 EMA) provides a solid foundation for future growth. Taken as a whole, these indicators suggest that traders have been consistently bullish.

In conclusion, it is anticipated that Bitcoin will continue to rise above $63,500. A break below this support, though, might indicate a brief correction.

Bitcoin Adoption Soars as New Crypto Platform Launches with $730,000 Presale

A new project in the cryptocurrency space is creating waves with a successful $730,000 presale launch while Bitcoin keeps growing.

The $13.5 billion market cap Bitcoin remains the dominant force in the crypto world, often referred to as the “digital gold” of the blockchain ecosystem.

Making use of Bitcoin’s popularity, a recently founded platform called Crypto All-Stars is transforming the staking landscape by fusing Bitcoin with some of the most well-liked meme coins available.

Although Bitcoin is not a meme coin per se, its impact on the market is undeniable, and initiatives like Crypto All-Stars are taking advantage of this by providing holders of Bitcoin with creative staking options alongside meme coins.

Since its launch last week, Crypto All-Stars has quickly attracted interest, raising $730,000 in its presale. The project is a compelling choice for investors because of its strategic token allocation, which promotes growth and sustainability.

So, Crypto All-Stars is a better choice than SUn Wukong if you are a meme coin holder who wants to invest your money. Visit the website to purchase $STARS using a card, ETH, USDT, or BNB.

Follow them on social media – X (Twitter) | Telegram to stay up-to-date on all their development plans.

Join the Presale Here

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