US Fed Rate Cut on Radar, Will Bitcoin (BTC) Breakout In August? 🎯

After a successful Bitcoin conference last weekend, this week be crucial for Bitcoin and the broader crypto market as the US Federal Reserve will announce its interest rate decision on July 31. The bitcoin price is showing strength trading nearly 15% up on the monthly chart and moving closer to $70,000.

Will Bitcoin Price Breakout In August?

Investors will be keenly watching the Fed’s stand on interest rate cuts at the upcoming FOMC meeting on July 31. As per the CME data, the probability of keeping interest rates unchanged in the next Fed meeting is 96%, however, the probability of 25 bps rate cuts in September is 85.8%. Apart from the Federal Reserve, the UK Central Bank will also announce its rate cut decision this week.

As per data from 10x Research, it would be too early to expect a Bitcoin price breakout in August. It noted that Bitcoin returns tend to be usually flat during the month of August and go down further in September.

However, it adds that tailwinds provided by the US election calendar, interest rate policy, and lower inflation could provide downside pressure with $1 billion of token unlocks scheduled for August. Also, Bitcoin dominance would continue to make new highs this cycle with notable implications, said 10x Research.

Although analysts are predicting an eventual breakout above $70,000, Bitcoin could need further macro help in terms of another round of lower inflation and projected Fed rate cuts, in order to trigger the upward rally. The US CPI report is scheduled for August 20.

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