Bitcoin’s price is on a tear.
The world’s biggest cryptocurrency has surged 2.2% to $69,784 over the past seven days, but a key Federal Reserve meeting this week will determine if Bitcoin can keep its momentum.
That’s according to Noelle Acheson, a crypto analyst and partner at Triple Crown Digital.
Federal Reserve’s Chair Jerome Powell is expected to deliver some “rousing language” on Wednesday and hint at interest rate cuts in September, Acheson said in a newsletter on Monday.
“There are short-term risks on the horizon, and summer tends to be lazy, hazy, crazy and range-bound,” she wrote. “But the tailwinds are strong, and getting stronger.”
Acheson singled out two factors that will drive Bitcoin’s price.
Federal Reserve
The Federal Reserve and other central banks’ gear up to make decisions on interest rates.
High interest rates usually means less money for investors, which zaps their appetite for riskier assets like crypto.
Less demand means lower crypto prices.
Central banks around the world hiked interest rates on the back of the Covid-19 pandemic and have kept them elevated since.
That may be about to change.
This week, market watchers expect the Fed to hint that it will cut interest rates in September at its Federal Open Market Committee.
Other central banks, such as the Bank of England and the Bank of Japan, are also expected to make similar announcements.
Still, “macro data could cast doubt on just how many cuts the Fed will deliver this year,” Acheson said.
Donald Trump
Crypto’s total market value has rallied 3% to $2.5 trillion over the past week.
The rally came in tandem with the launch of the much anticipated Bitcoin 2024 conference in Nashville, Tennessee last week.
Former US President Donald Trump was a keynote speaker at the event and promised to create a Bitcoin stockpile if reelected.
Republican Senator Cynthia Lummis followed up his promise and pledged to introduce a bill to make that happen.
While Bitcoin is up 2.5% over the past 24 hours, “we could have a disappointment dump if Trump shows signs of forgetting what he said,” Acheson wrote.
Crypto market movers
Bitcoin is up 2.2% over the past 24 hours and is trading at $69,784.
Ethereum is up 1.6% and is trading at $3,328.
What we’re reading
Hong Kong lawmaker follows Trump in proposing Bitcoin reserve — DL News.
Crypto Funds See Muted $254M Inflows, but There’s a Catch — Milk Road.
DAO Delegate Group Accused of ‘Governance Attack’ on Compound Finance — Unchained.
HSBC Australia Halts Crypto Exchange Payments Following $171M Scam — Milk Road.
Trump courts Bitcoin voters with pledge to create ‘national stockpile’ — DL News.
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
