According to ChainCatcher, Bitcoin fell below the $60,000 mark ahead of the widely expected Federal Reserve rate cut later this week. The Fed's upcoming policy adjustments have made global markets nervous.
The first U.S. interest rate cut in more than four years signals easier financial conditions, which is typically a positive backdrop for riskier assets such as cryptocurrencies. But investors are unsure about the magnitude of Wednesday’s rate hike or how the market will react to the latest projections from Fed officials, known as the dot plot, and briefings from Fed Chairman Jerome Powell.
Bitcoin prices rose 10% in the seven days to Sunday, their biggest weekly gain since July, possibly reflecting a revival in bets on a 50 basis point rate cut by the Federal Reserve.
In the bitcoin options market, traders are giving the Fed meeting “significantly more pricing weight than we’ve seen recently,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for digital asset derivatives trading.
Arguably, the outlook for monetary policy has become the main factor driving Bitcoin’s short-term performance, overshadowing (at least for now) the impact of the U.S. presidential election. (Bloomberg)
