Bitcoin experienced a volatile session on September 6, briefly rallying before the Wall Street opening but ultimately dipping below the $55,000 mark as U.S. employment data fell short of expectations. Early in the trading session, Bitcoin aimed for $57,000 but retraced its steps, eventually marking new one-month lows at $54,919 on Bitstamp, following disappointing nonfarm payrolls figures for August.
Amid these fluctuations, a significant statement came from John Williams, President of the New York Fed, during his speech at the Council on Foreign Relations. Williams suggested a shift in monetary policy was on the horizon: “The current restrictive stance of monetary policy has been effective in restoring balance to the economy and bringing inflation down,” he noted. He added, “With the economy now in equipoise and inflation on a path to 2 percent, it is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate.”
Following this, the CME Group’s FedWatch Tool indicated that the market was almost evenly split on the likelihood of a 25-basis-point or 50-basis-point rate cut at the next Federal Reserve meeting on September 18, with probabilities at 53% and 47%, respectively.
Concurrently, the U.S. dollar index (DXY) saw a rise of 0.3% at market open, negating Bitcoin’s initial positive reaction to the macro data. Yet, Daan Crypto Trades commented on the long-term outlook for the dollar, noting weakness and predicting a potential drop: “$DXY Remains very weak and is sitting on the ~101 support level,” he shared on X, suggesting, “I think it’s a matter of time before this breaks lower to the 99.5 level and beyond. This should generally help risk assets.”
Meanwhile, focusing on Bitcoin’s immediate price movements, trader and analyst Rekt Capital highlighted ongoing challenges for Bitcoin bulls. “Bitcoin is forming a 4-hour downtrending channel, with a Bullish Divergence developing as well,” he observed, pointing to an increase in relative strength index (RSI) values amidst a declining price trend, indicating potential for future bullish activity despite current market frustrations.
