The cryptocurrency markets continued their recent uptick, with major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and Toncoin (TON), in the green.
The crypto market cap is also up over 3%. It is currently at $2.14 trillion, as markets see bullish sentiment build following the Federal Reserve’s announcement of a 50 basis point reduction in interest rates.
Several analysts and market watchers, including Rich Dad Poor Dad author Robert Kiyosaki, believe the price of BTC and other major currencies could register a huge uptick following the rate cuts. Kiyosaki predicted that investors will turn to assets such as Bitcoin, gold, and silver as interest rates drop, leading to their prices skyrocketing.
Federal Reserve Cuts Interest Rates By 50 Basis Points
Bitcoin (BTC) has moved past $62,000 following the Federal Reserve’s announcement of a 50 bps rate cut. This marks the first rate cut in almost four years after the Fed’s most aggressive hiking cycle. The Fed stated in a press release,
“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent and judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.”
The Fed expects median benchmark rates to drop to 4.4% by the end of the year. Fed Chair Jerome Powell stated he believes the US economy is in a good place, and the rate cut will ensure it stays there. Following the rate cut, BTC registered an increase of 1.2% to climb above $61,000 before retreating. US equities also erased all their gains on the Fed decision, with the Nasdaq 100 and S&P 500 ending the session down by 0.3%.
Conflicting Views On Rate Cut
Meanwhile, conflicting views on the impact of the rate cut are emerging. Marc P. Bernegger, co-founder at AltAlpha Digital, predicted that the rate cut would significantly boost the price of major cryptocurrencies such as Bitcoin and Ethereum. According to Bernegger, a lower interest rate would significantly boost liquidity and enable investors to invest in risky assets. A lower cost of borrowing will also encourage more funds to flow into digital assets. Lower interest rates have historically led to increased asset prices and positively impacted investor sentiment. Bernegger believes the rate cut would boost demand and elevate prices, contributing to enhanced bullish sentiment in the markets.
However, the co-founder of BitMex has provided a counterview, explaining that a rate cut is a bad idea that could increase inflation and strengthen the Japanese Yen. Hayes stated that while rate cuts generally boost liquidity, the current economic climate is different.
“Lowering rates is a bad idea right now because inflation remains an issue in the US.”
He also stated that the rate cut could impact the global financial system, particularly the Japanese Yen and that a narrowing of the interest rate gap between the US and Japan could result in a substantial increase in the Yen’s value and lead to investors backing out of the “Yen carry trades.”
“The second reason is that the interest rate differential between the US and Japan narrows with rate cuts. That could lead to sharp appreciation in the Yen and trigger unwinding of the Yen carry trades.”
SEC Flayed Over Crypto Regulations
Congress members and several representatives of the crypto community met to discuss the Securities and Exchange Commission’s regulatory approach to the crypto industry. SEC Chair Gary Gensler’s role came under intense scrutiny as Congress discussed the excesses of the commission’s approach towards the industry. Congressman Ritchie Torres recalled a meeting with Gensler in which he questioned him about tokenizing a Pokemon card. Torres stated Gensler’s response demonstrated his insecurity regarding any form of decentralization. Congressman Wiley Nickel also declared Gensler’s approach wrong, stating that harsh regulations are hurting consumers, innovation, competitiveness, and the Democratic administration.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) moved above $62,000 following the Federal Reserve’s announcement of a 50 bps rate cut as it continues to see support. As we can see from the price chart, BTC has been relatively bullish over the week despite facing considerable selling pressure on Wednesday. If the current bullish sentiment persists, BTC could push above the 200-day SMA and settle at $65,000. As we can see in the price chart, BTC ended the previous week on a bearish note, dropping below the 50-day SMA on Sunday and settling at $59.165. Sellers continued to exert influence on Monday as BTC dropped a further 1.69% and settled at $58,164, just above the 20-day SMA.
Source: TradingView
However, sentiment changed on Tuesday as BTC rebounded from the 20-day SMA, moving above the 50-day SMA to reclaim the $60,000 level and settle at $60.321. On Wednesday, BTC faced significant selling pressure as sellers attempted to push the price back below the 50-day SMA. As a result, it dipped to a low of $59,217. However, sellers were able to retake control as demand picked up, thanks to the 50-day SMA acting as a dynamic level of support. BTC could reclaim the $60,000 level after registering an increase of 2.41% and settling at $61,773.
The current session saw BTC climb above the crucial $62,000 level as markets registered an increase following the Federal Reserve’s announcement of a rate cut. If BTC can continue its upward momentum, it could push above the 200-day SMA and rally to $65,000. However, if sentiment changes, sellers will look to drive the price below $60,000. A bullish MACD indicates that buyers are firmly in control at the moment.
Ethereum (ETH) Price Analysis
Ethereum is up almost 4% over the past 24 hours as bullish sentiment returns to the market, finally pushing above the crucial $2,400 level, breaking above a key resistance level. ETH has been relatively positive this week, as seen in the price chart, despite registering a substantial drop of 4.21% on Sunday to $2,318, ending the previous week on a bearish note. The bearish sentiment persisted on Monday as ETH slipped below $2,300 after a drop of 0.95%. However, thanks to strong support at this level, it quickly recovered by 2,06% on Tuesday to reclaim $2,300 and settle at $2,343. Buyers also attempted a move above the 20-day SMA but were unable to do so.
Source: TradingView
Wednesday saw a tussle between buyers and sellers as each attempted to control the session. Sellers attempted to drag ETH below $2,300 again, dropping the price to a low of $2,280. However, buyers were quick to counter the sellers as demand picked up, eventually reversing the selling pressure to post an increase of 1.36% and settle at $2,375. With the announcement of a 0.50% rate cut having a positive impact on the market, ETH pushed above $2,400 and the 20-day SMA during the ongoing session and is currently trading at $2,437.
A push above $2,500 could be possible if buyers can maintain the current momentum. Such a move would also indicate the bears are retreating, marking a potential shift in sentiment around ETH. On their part, sellers will look to push ETH back below $2,400 and $2,300. Should this occur, ETH could drop as low as $2,100.
Solana (SOL) Price Analysis
Solana (SOL) is looking to test the $140 resistance once again as buying activity picks up following the Fed’s announcement of a 50 bps rate cut. SOL has been struggling to push above $140 after coming across a stubborn level of resistance, with its latest attempt to push above it coming just last weekend. However, buyers failed in their attempt as SOL dropped by 1.41% on Saturday and a further 4.20% on Sunday to slip below the 20-day SMA and settle at $131. The current week began with SOL experiencing significant volatility as sellers attempted to push it below $130 while buyers looked to keep it above the support level.
Source: TradingView
As a result, SOL did not register any movement on Monday. Volatility persisted on Tuesday as buyers attempted a move above the 20-day SMA. However, as demand dried up, sellers were able to push SOL back down after it reached a day high of $135, as it eventually settled at $131 after a marginal increase. SOL faced significant selling pressure on Wednesday as it dropped to a day low of $127 before recovering and settling at $134 after an increase of 2.07%. The current session sees buyers firmly in control, with SOL up by 3.41% as it looks to push above $140 and the 50-day SMA.
If SOL pushes above $140 and consolidates, it could rally to $150 or above in the short term. However, the price could drop back to $130 if sentiment flips and sellers regain control. If this support level is breached, it opens the doors for a drop to $120 or below.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) is hovering just under $0.105 as buyers look to push above this level. However, they must first contend with significant resistance before a push towards $0.110 can materialize. DOGE slipped below the 50-day SMA over the weekend as bearish sentiment intensified, pushing it down by 2.55% to $0.103. The price continued to drop on Monday, registering a drop of 3.30% to slip below $0.100 and the 20-day SMA and settle at $0.099.
Source: TradingView
However, $0.100 is a level at which DOGE has strong support. As a result, it rebounded on Tuesday, pushing back above the 20-day SMA and $0.100 to settle at $0.101 after registering an increase of almost 2%. Wednesday saw DOGE continue to push upwards despite coming across selling pressure and move above the 50-day SMA after registering an increase of 2.17% to settle at $0.103. The current session sees DOGE up by 1.25% as it looks to push above the resistance at $0.105. If DOGE can push above this $0.105, we could see a rally to $0.110. However, if sellers regain control, they will look to push the price to $0.100.
Polkadot (DOT) Price Analysis
Polkadot (DOT) rebounded from its support level to counter growing selling pressure and push above $4.20, although the relief rally could be short-lived if buyers cannot build momentum. DOT had flipped to bearish after a failed attempt to push above $4.50 on Sunday, falling into the red after reaching a day high of $4.56 as sellers took control and yanked the price down. DOT eventually settled at $4.40 after a drop of 0.90%. Selling pressure intensified on Monday as DOT dropped by 4.55% to $4.20.
Source: TradingView
Sellers also remained in control on Tuesday, as DOT slipped below the 20-day SMA to 4.16 after a drop of 0.95%. Wednesday saw sellers drag DOT to a low of $3.98 as bearish sentiment intensified. However, demand picked up at DOT’s support levels, allowing buyers to take control and push the price back above $4. DOT eventually registered a marginal increase and settled at $4.17. The current session sees DOT marginally up as it looks to push above the 20-day SMA. If it is successful, we could see another move to $4.50. However, should sellers retake control, DOT could drop back to its support level and rebound as investors buy the dip.
Uniswap (UNI) Price Analysis
Uniswap (UNI) is struggling to push above $7 as sellers continue to thwart buyer attempts to break above this level. UNI attempted a move past $7 on Friday but eventually settled at $6.94 after a 2.19% increase. It fell back in the red over the weekend as sellers took control, dropping almost 4% on Saturday and 1.95% on Sunday to settle at $6.53. Sellers continued to influence on Monday, pushing UNI down by 1.80% to $6.42. Sentiment changed on Tuesday thanks to the 50-day SMA acting as a dynamic level of support and demand picking up as UNI dropped close to its support level, attracting buyers.
Source: TradingView
As a result, UNI rebounded, rising almost 6% and settling at $6.78. Buyers also attempted a move above $7 as UNI reached a day high of $7.13. However, demand dried up at upper levels, allowing sellers to take control and push UNI below $7. On Wednesday, it was the turn of the sellers to push the price the other way as UNI dropped to a low of $6.41. However, with UNI’s support level again coming into play, buyers pushed the price back up. UNI eventually registered only a marginal drop and settled at $6.77. The current session sees UNI marginally up as buyers and sellers struggle to assume control.
Injective (INJ) Price Analysis
Injective (INJ) is up almost 10% as it surged past $20 during the ongoing session as bullish sentiment picked up following Monday’s low of $17.81. INJ started the week in the red as it dipped below the 50-day SMA on Monday after a 3.54% decline to settle at $18.02. However, with the 20-day SMA acting as a dynamic level of support, INJ made a strong recovery, rising over 8% to push back above the 50-day SMA and settle at $19.50. Buyers also attempted to push above $20, as seen in the price chart but were unable to do so.
Source: TradingView
Sellers attempted to drive INJ back below the 50-day SMA on Wednesday as it dropped to a day low of $18.18. However, demand increased at lower levels, allowing INJ to recover quickly. INJ eventually settled at $19.78, registering an increase of 1.48%. The current session sees INJ up by almost 4%, having pushed above the $20 level. Buyers will look to keep INJ above $20 and attempt a push towards $25. On their part, sellers will look to drive the price back below $20.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
