Claim $500Fed’s Rate Cut Decision Looms as Bitcoin (BTC) Price Aims for $89,200
Highlights
- The U.S. Federal Reserve is expected to maintain the fed funds rate at 5.25-5.50%.
- Traders have adjusted their expectations for a potential rate cut in September this year.
- Crypto analyst Ali Martinez forecasts a significant potential rise in Bitcoin's value, identifying a possible local peak at $89,200.
This week holds significant importance for Bitcoin (BTC) and the wider cryptocurrency market, with all eyes on the U.S. Federal Reserve’s forthcoming interest rate decisions following the unveiling of May’s CPI and PPI data. Despite its inability to maintain levels above $71,000 in the previous week, the Bitcoin (BTC) price is currently hovering around the $69,500 mark as of the latest update.
What to Expect on Fed Rate Cuts?
Last week, the Bank of Canada and the European Union decided to switch gears towards monetary easing and cut down interest rates. However, several market analysts believe that the U.S. Federal Reserve is unlikely to act in a similar direction.
When the Federal Reserve’s policy-setting committee wraps up its two-day meeting on Wednesday, it is widely anticipated that they will maintain the influential fed funds rate within the current range of 5.25-5.50%. This level, a 23-year high, has been in place since last July to continue exerting downward pressure on inflation.
According to the CME Group’s FedWatch Tool, traders are primarily expecting the earliest possible rate cut to occur in September. Traders reduced their bets on a September rate cut to 50.8% on Friday, down from 68.7% the previous day. This shift followed a Bureau of Labor Statistics report indicating that the job market was stronger than anticipated in May, suggesting that wages and job growth could be exerting upward pressure on inflation.
Bitcoin (BTC) Price Action Ahead
Renowned crypto analyst Ali Martinez has forecasted a significant potential increase in Bitcoin’s value, identifying a possible local peak at $89,200. Martinez highlighted the Bitcoin Taker Buy Sell Ratio on HTX Global, which has surged to an impressive 730.
This substantial buy pressure reflects a dominant bullish sentiment, indicating that Bitcoin’s price could experience a strong upward movement in the near future.
As per Martinez, there’s a significant uptick in Bitcoin network activity, noting that the number of daily active Bitcoin addresses has broken a downtrend that began on March 5. In the past 24 hours, 765,480 Bitcoin addresses were active.
Martinez emphasized that this surge in network activity is a positive indicator, suggesting that the current Bitcoin bull run is likely to continue.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Michael Saylor’s “Green Dots” Message Hints At Fresh Bitcoin Buying As BTC Faces $90K Wall
- Fed’s Hammack Signals No Rush to Cut Rates as January Hold Odds Near 80%
- XRP ETFs Reach $1.21B as Asset Managers See a ‘Third Path’ Beyond Bitcoin
- Nearly $50M in USDT Stolen After Address Poisoning Scam Targets Crypto Trader Wallet
- Breaking: Rep. Max Miller Unveils Crypto Tax Bill, Includes De Minimis Rules for Stablecoins
- Will Solana Price Hit $150 as Mangocueticals Partners With Cube Group on $100M SOL Treasury?
- SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
- Bitcoin Price Alarming Pattern Points to a Dip to $80k as $2.7b Options Expires Today
- Dogecoin Price Prediction Points to $0.20 Rebound as Coinbase Launches Regulated DOGE Futures
- Pi Coin Price Prediction as Expert Warns Bitcoin May Hit $70k After BoJ Rate Hike
- Cardano Price Outlook: Will the NIGHT Token Demand Surge Trigger a Rebound?
