Bitcoin Reaches Unprecedented Heights Amid Fed Rate Cut Speculation
Bitcoin recently hit a record-breaking price of $124,000. This surge is largely attributed to growing anticipation of a Federal Reserve interest rate reduction in September.
The U.S. Consumer Price Index report for July revealed stable annual inflation at 2.7%. This figure fell short of the predicted 2.8%, fueling hopes for a Fed rate cut. As of now, market tools suggest a 95.8% chance of a rate reduction in september. Lower borrowing costs frequently enough lead investors towards higher-risk assets such as cryptocurrencies.
- Spot Bitcoin ETFs attracted over $1 billion in net inflows over five days.
- Ethereum ETFs saw similar inflows, boosting market optimism.
A CoinGlass heatmap indicates massive short liquidations, especially between $124,000 and $126,000, adding to upward pressure. Though, with long liquidation levels around $120,000-$121,000, a price dip could trigger mass sell-offs.
The BTC 4-hour chart shows an ascending channel pattern, signaling continued growth. Currently, a retreat to around $120,500 seems imminent. If it holds this level, Bitcoin could soar to $127,000 soon.
The bullish crossover of the 50-day and 200-day moving averages further supports this upward trajectory. Bitcoin’s rise reflects robust investor confidence in its future.
