According to Cointelegraph, the cryptocurrency market experienced an uptick today, with the total market capitalization increasing by approximately 1% in the last 24 hours, reaching $2.13 trillion on August 23. This rise includes gains from Bitcoin (BTC) and Ether (ETH), which have risen around 1.03% and 0.05%, respectively.
The US Dollar Index (DXY), which tracks the USD’s performance against major world currencies, has dropped 3.68% from its July 30 high of 104.34 to a low of 100.50 on August 22, marking its lowest level of 2024. The Kobeissi Letter attributed the weakening dollar to downward revisions of US employment data. The US Bureau of Labor Statistics (BLS) revised the 12-month job growth lower by 818,000 jobs, indicating that the jobs data overstated payrolls by an average of 68,000 per month from April 2023 through March 2024. This has led to rising expectations that the Federal Reserve will ease its monetary policy soon.
On August 23, the release of dovish FOMC minutes further fueled market speculation that a rate cut is almost certain in September. The Kobeissi Letter noted that the question is no longer whether the Fed will cut rates, but by how much—25 or 50 basis points. Data from the CME FedWatch tool shows a 100% probability of a 25 to 50 basis point rate cut in September.
From a technical perspective, the crypto market’s gains today are part of a rebound that started at a support confluence comprising the major support at $1.86 trillion and the support line of an ascending triangle. The total market cap, currently at $2.094 trillion, seeks to break above the resistance line of the triangle at $2.118 trillion. If this occurs, it would signal a bullish breakout from the current consolidation phase, potentially pushing the market toward the $2.4 trillion area, which is the bullish target of the ascending triangle.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.