Crypto Morning: Bitcoin Reaches $68K After China Unexpectedly Cuts Interest Rates
"Should this trend continue, BTC could surpass $70K tomorrow with the launch of Ethereum ETFs," an analyst wrote.
Bitcoin experienced a brief dip on Sunday (21st) after U.S. President Joe Biden announced he would not seek a second term. The BTC drop led to the liquidation of futures contracts worth $159 million, according to Coinglass.
However, the downturn was short-lived. Bitcoin's price rebounded past its previous point and briefly reached $68,000 on Monday morning (22nd). It even peaked at $68,480.36.
At the time of writing, Bitcoin has pulled back to $67,284.98 but is still trading 0.4% higher than yesterday, according to Coingecko data. Additionally, BTC has gained 7% compared to the same period last week and recorded a 24-hour trading volume of $30.2 billion.
Although Biden's withdrawal from the 2024 presidential race was undoubtedly a significant catalyst for some investors, other macroeconomic factors are at play.
The People's Bank of China (PBOC) surprised markets with an unexpected cut in its short-term policy and benchmark lending rates on Monday, a significant move by the world's second-largest economy.
This announcement comes as investors await the next meeting of the U.S. Federal Reserve's Federal Open Market Committee (FOMC), scheduled for July 31.
Approximately 95% of investors are confident that the FOMC will keep interest rates unchanged in nine days, according to the CME FedWatch tool.
Bitcoin tends to view U.S. interest rate cuts as a bullish trend because it makes investments like Treasury bonds less attractive. This usually leads investors to allocate a larger portion of their assets to riskier categories such as stocks and cryptocurrencies.
"With significant macroeconomic indicators such as the U.S. GDP and PCE to be released this week, we anticipate high market volatility in the coming days," wrote BRN analyst
