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Fed rate cut hint boosts Bitcoin, breaking through $62k with bullish momentum.
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Increased option activity shows traders’ confidence. Targeting 80k-85k in December-March.
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Bitcoin stabilises in a new range of $61k-$70k, with strong ETF flows and decreasing sell pressure.
After Federal Reserve Chair Jerome Powell spoke at Jackson Hole, Bitcoin’s price soared to $64,151.81. This is a 5.47% increase in 24 hours. His remarks, which hinted at possible interest rates cuts in September, sparked optimism among U.S. Investors, driving strong demand.
Powell did not give specifics but the possibility of rate cuts has brought August Payrolls to the forefront, which could have an impact on the size of the cut. A moderate 25 basis-point cut is expected to be positive for markets. A 50 basis point cut would signal the Fed’s resolve to avoid an economic downturn.
After Powell’s speech the market experienced a spot-driven rally, with flat funding rates. This rally will likely attract more leveraged positions, especially if Bitcoin maintains the $62,000 level of support as the summer ends.
Options traders have increased their confidence and are displaying a significant topside position. Before the speech, 600 contracts of 62.5k – 63k Calls on Monday, now in the money were purchased. Bullish sentiment has also extended into the long-term, with increased bets placed on December and March contracts that target 80k to85k strikes.
Bitcoin has settled into a new trading band of $61,000-$70,000. Selling pressure seems to be easing, and spot ETFs saw net inflows for 10 of the past 12 days. The market is expected to stay within this range through the fourth quarter, despite upcoming events like Nvidia’s earnings report and the September rate reduction.
Bitcoin’s price soared to $64,151.81 in the wake of these news, a 5.47% rise over the last 24 hours.
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