On the eve of the Federal Reserve's interest rate cut, Bitcoin makes a strong breakthrough, aiming for $90,000 in the next year?
As cryptocurrency performs strongly, the market is closely watching tomorrow's Federal Open Market Committee meeting, where the Federal Reserve is expected to announce its first interest rate cut since 2020.Author: BitpushNews
On the eve of the Federal Reserve's interest rate decision, the cryptocurrency market saw a widespread surge.
According to Bitpush data, Bitcoin soared to $61,000 during Tuesday's trading, marking the largest intraday gain since August 8. Major cryptocurrencies such as Ethereum, Dogecoin, and Solana also rose, with increases ranging from 2% to 4%. As of the time of writing, the trading price has retreated to around $60,253, with a nearly 4% increase over 24 hours.
In the altcoin sector, most tokens in the top 200 by market capitalization experienced gains. Dymension (DYM) saw the largest increase, rising by 24.1%, followed by Immutable (IMX) and Celestia (TIA), which rose by 15.6%. Trust Wallet Token (TWT) had the largest decline, dropping by 12.5%, while Helium (HNT) fell by 5.3% and Theta Network (THETA) decreased by 1.7%.
The overall market capitalization of cryptocurrencies currently stands at $2.08 trillion, with Bitcoin's market share at 57.1%.
The three major U.S. stock indices showed mixed results, with the Nasdaq index closing up 0.2%, the Dow Jones index down 0.12%, and the S&P 500 remaining flat.
Focus on Rate Cuts
As cryptocurrencies perform strongly, market observers are closely watching tomorrow's Federal Open Market Committee (FOMC) meeting, where the Federal Reserve is expected to announce its first rate cut since 2020.
Steven Lubka, head of Swan Private at Swan Bitcoin, stated that regardless of the extent of the rate cut, the fourth quarter will be favorable for the cryptocurrency asset class.
In a report, he said: "If the Fed cuts rates by 50 basis points, Bitcoin's price could rise, but if the market views it as an emergency measure, it could offset that increase. A 25 basis point cut would yield more uncertain results, while no cut could lead to short-term sell-offs. Looking ahead to the fourth quarter of 2024, we expect Bitcoin to perform strongly due to improved liquidity conditions. Additionally, the FTX bankruptcy is expected to return $16 billion to investors, providing them with liquidity to repurchase assets."
According to CME's "FedWatch," the probability of a 25 basis point rate cut in September is 37.0%, while the probability of a 50 basis point cut is 63.0%.
Bitcoin Aiming for $90,000 in the Next Year
TradingView analyst TradingShot stated: "Bitcoin has strongly broken through the 1D MA50 (blue trend line in the chart below) today and has slightly surpassed the top of the triangle pattern since July (lower high trend line). After rebounding from the 1W MA50 (red trend line) for the second time in just one month, buying pressure is strong. If the 1D candle closes above the lower high, we will receive a strong breakout buy signal for at least the remainder of this year."
TradingShot noted, "In this scenario, we see a rising channel similar to that before March 2024, which could indeed test the resistance area for six months before the U.S. elections, followed by a technical pullback before resuming the upward trend for the remainder of the year, with a target of at least the 2.0 Fibonacci extension level, or $90,000."
Independent analyst Jelle mentioned in an X post on September 17: "The local structure of Bitcoin has turned bullish here, closing above the previous September high and locking in a higher low."
The recent high for Bitcoin mentioned by Jelle was $60,670, reached on September 13, surpassing the September 3 high of $59,830. According to the analyst, this trend indicates that the market is strong enough to overcome the resistance level of $65,000. He stated: "From the BTC/USD 12-hour chart, it looks promising to break through $65,000—then set a new all-time high."
