Cryptocurrencies Remain Stable Ahead of Fed’s FOMC Meeting: Analyst Cautions on Impact of Bitcoin Staying Below $64K – Grayscale Bitcoin Mini Trust Units (ARCA:BTC)
Cryptocurrencies experienced volatility on Thursday as anticipation built around the upcoming interest rate cut. Bitcoin fluctuated within a tight range between $57,700 and $58,400, lacking a clear trend. Similarly, Ethereum initially dropped to $2,300 in early trading before recovering to $2,350 overnight.
Market conditions remained stable, with liquidations totaling just over $63 million in the past 24 hours, resulting in a balanced number of bullish and bearish positions being liquidated. Despite former President Donald Trump announcing the launch date of his crypto project, the market showed minimal reaction.
Bitcoin’s funding rate on major exchanges like Binance and Bybit was negative, indicating a prevalence of bearish leverage among traders. This sentiment was reinforced by a notable decline in the Long/Short Ratio for the cryptocurrency.
In the past 24 hours, top gainers included Beam (BEAM) with a 9.91% increase, Quant (QNT) up by 9.88%, and BinaryX (BNX) rising by 8.75%. The global cryptocurrency market reached $2.04 trillion, reflecting a 0.46% uptick.
Stock markets closed positively, with the S&P 500 climbing 0.75% to 5,595.76, the Nasdaq Composite gaining 1% to 17,569.68, and the Dow Jones Industrial Average rising by 0.58% to 41,096.77. Investors analyzed August’s producer inflation data, which exhibited a more significant slowdown in the headline producer price index compared to stable core inflation.
Market participants assessed the likelihood of a 25-basis-point rate cut at the upcoming FOMC meeting, with a 59% probability, while expectations for a more aggressive 50-basis-point cut increased to 41%.
Prominent analytics firm Santiment observed a surge in positive Bitcoin sentiment, surpassing negative commentary for the first time in over a year. Santiment cautioned that excessive enthusiasm could signal a market peak, suggesting a potential test of Bitcoin’s March all-time high values.
Renowned cryptocurrency analyst Ali Martinez highlighted Bitcoin’s extended period below its 200-day moving average, hinting at a possible decline towards its realized price of $31,500.
In conclusion, the cryptocurrency market’s performance remained dynamic amid market uncertainties and shifting investor sentiments, underscoring the ongoing impact of external factors on digital asset valuations.
