The U.S. Federal Reserve (Fed) announced that it would keep interest rates unchanged, but said that if inflation continues to cool, it may cut interest rates as soon as September. Bitcoin once broke through 68,000 US dollars after hearing the news. However, with the market selling pressure, today (1 ) in early Asian trading at the $64,000 mark.
According to CoinGecko market quotation, Bitcoin has fallen by more than 3.3% in the past 24 hours. As of writing, it is still fluctuating around the US$640 million mark. It has fallen by more than 13% from the historical high of US$73,737 in March this year, and has hit a low of US$63,887 today. Ethereum fell below the US$3,200 level, reaching US$3,186 at the time of writing, a drop of 3.4% in the past 24 hours.
As the overall cryptocurrency market weakened, a large number of liquidations also broke out in leveraged positions. The cryptocurrency futures contract market exploded with $188 million in positions in the past 24 hours, of which $158 million came from long positions.
The Fed announced on Wednesday that interest rates will remain on hold again. Fed Chairman Jerome Powell pointed out at a press conference that if economic data continues to maintain its current trend, "a rate cut may be discussed as soon as the next meeting (September 18)."
Traditional assets are collectively rising, but the cryptocurrency market is in full collapse
Different from the rumbling noise in the cryptocurrency market, traditional assets are generally higher today, with gold, crude oil, and U.S. stocks rising collectively. Zach Pandl, director of research at Grayscale, said that this situation may be due to traders’ positions before the FOMC meeting. He pointed out:
Stocks may be slightly undervalued after the recent pullback, while Bitcoin experienced a period of strong inflows and gold rebounded after a period of downturn.
He concluded: “From an overall perspective, the combination of the Fed’s interest rate cuts, bipartisan attention on cryptocurrency policy issues, and the prospect that Trump’s second term in the White House may advocate for a weaker U.S. dollar will have a negative impact on Bitcoin’s future. It should be very beneficial."
Analyst: Bitcoin continues to trade sideways, Ethereum challenges the $4,000 mark
Jag Kooner, head of derivatives at Bitfinex, said in an analysis report: "A rate cut in September will drive bullish sentiment and help increase market liquidity, which will be beneficial to Bitcoin and other cryptocurrencies as investors look beyond traditional assets. higher returns.”
Looking forward to the market outlook, Singapore-based cryptocurrency investment institution QCP Capital believes that the U.S. government recently transferred 30,000 Bitcoins, which has brought uncertainty to the cryptocurrency market. Analysts noted: “Bitcoin failed to break $70,000 for the 6th time. We still believe Bitcoin will continue to trade sideways.”
As outflows from Ethereum spot ETFs slow down in the next two weeks, Ethereum's performance will gradually catch up with Bitcoin, so long Ethereum is the first choice. Our target is a break above $4,000, which would be the 2024 high.
〈The cryptocurrency market rebound stalls! Analysts expect: Bitcoin continues to trade sideways, Ethereum rises to $4,000> This article was first published on "Blocker".
