"Bitcoin price's recent rally yesterday ran into resistance just above $116,000, settling under $113,000 at the time of writing, as traders weigh broader macroeconomic signals ahead of today's Federal Reserve announcement. The cryptocurrency market's total capitalization has retreated 1.4% over the past 24 hours to $3.81 trillion, according to Bitcoin Magazine Pro data, even as U.S. equities continue to reach fresh highs."
"Cooler-than-expected consumer price inflation last week and a slowing labor market have fueled expectations for this reduction, with markets seeming to be pricing in nearly two more cuts by year-end. Lower interest rates historically boost risk appetite, including demand for bitcoin, by reducing yields on cash and bonds and increasing liquidity in financial markets. However, the immediate impact of today's rate cut may be muted, as it may be already priced in."
"Investors will be scrutinizing Fed Chair Jerome Powell's press conference for guidance on the future trajectory of monetary policy. A key question remains whether the Fed will signal an end to its Quantitative Tightening program, a dovish move that could inject further upside momentum into risk assets. Powell has previously indicated that the Fed is nearing this stage, though uncertainty from the ongoing government shutdown could cloud the outlook. If Quantitative Tightening ends, bitcoin should react positively."
Bitcoin price retraced after encountering resistance above $116,000 and settled below $113,000 as market participants assess macroeconomic signals ahead of the Federal Reserve decision. The cryptocurrency market capitalization fell 1.4% to $3.81 trillion while U.S. equities reached fresh highs. The FOMC is widely expected to cut the benchmark rate by 25 basis points, supported by cooler consumer inflation and a slowing labor market, and markets price nearly two more cuts by year-end. Lower rates tend to boost risk appetite and bitcoin demand, though a cut may be priced in already. Investors will watch Powell for guidance on quantitative tightening and monetary policy. U.S. labor shows weakness despite low unemployment, inflation remains above 2% partly due to tariffs, and institutional demand for bitcoin remains supportive.
Read at Bitcoin Magazine
Unable to calculate read time
Collection
[
|
...
]