China’s aggressive monetary measures, coupled with the Federal Reserve’s recent 50 basis point rate cut, bode well for a global easing trend.
Written by: BitpushNews
With the release of a stimulus package from the People's Bank of China, financial markets have regained optimism.
According to Bitpush data, Bitcoin fluctuated around $63,200 that day, and then broke through the $64,000 resistance level. As of press time, the trading price was $64,440, a 24-hour increase of 1.8%.
The altcoin uptrend continued, with most of the top 200 tokens seeing gains.
The biggest gainer was Echelon Prime (PRIME), up 21.3%, followed by dogwifhat (WIF), up 14.9%, and Altlayer (ALT), up 12.4%. The biggest losers were Aave (AAVE), down 6.6%, Catizen (CATI), down 6.6%, and MX Token (MX), down 5.3%.
The current overall cryptocurrency market capitalization is $2.25 trillion, with Bitcoin accounting for 56.3%.
In the U.S. stock market, by the close of the day, the S&P 500, Dow Jones and Nasdaq all rose, up 0.25%, 0.20% and 0.56% respectively. Spot gold continued its record-breaking rally, breaking through $2,660 per ounce for the first time in history.
Global easing trend
The Conference Board reported on Tuesday that consumer confidence fell sharply in September, with its overall index falling to 98.7 from 105.6, the biggest monthly drop since August 2021.
Perhaps influenced by this news, according to data from CME FedWatch, the market expects the Federal Reserve to cut the benchmark interest rate by another 50 basis points at its November meeting, and this expectation has risen to 61% from 50% the previous day.
QCP Capital analysts said China's aggressive monetary measures, coupled with the Federal Reserve's recent 50 basis point rate cut, indicate a global easing trend that could provide support for risk assets, including cryptocurrencies, in the near future.
Best September performance?
Despite a rocky start to September, Bitcoin has rebounded 7.25% so far this month as the end of the month approaches and is now on track to record its strongest September performance in history.
From a technical perspective, Joel Kruger, market strategist at LMAX Group, believes that Bitcoin’s initial resistance is at $65,000: “We need to see a clear break of this psychological barrier to start the next wave of upward momentum and retest and break through the all-time high.”
Many analysts expect bulls to easily break through $65,000 in the coming months, especially if Bitcoin closes September with positive momentum. This is because historical data shows that in years with a September rally, Bitcoin usually performs strongly in the fourth quarter.
“October and November were the best performing months for crypto assets, so the market should look forward to a strong fourth quarter,” Kruger concluded.
“It’s psychologically very difficult to go from looking to trim gains during volatility to letting winners continue to rise,” crypto analyst Will Clemente wrote. “The exact change in BTC market structure above $65,000 is, in my opinion, the threshold for risk appetite and shifting this bias.”
Data from CoinGlass shows that as prices remain range-bound, liquidity on both the long and short sides of BTC/USD exchange order books has strengthened, with $62,000 and $65,000 remaining key levels for traders to watch.
Well-known trader Daan Crypto Trades expressed optimism about the next move: "Bulls know where the liquidity is. Breaking through the $65,000 level will create higher highs and subvert the market structure. After that, the $70,000 level will have great potential. There is still a lot of liquidity in this area. We have to take it step by step."
