The leading cryptocurrency, Bitcoin, quickly dropped after the US stock market opened but then surpassed $60,000 again. However, if previous patterns repeat, we might see the price decline as investors accustomed to short selling strengthen their positions at these levels. At some point, BTC’s price will need to extend its surprising rise, catching those looking for short-selling opportunities off guard.
Bitcoin Rises Again
Expectations for a rate cut in the markets are strengthening. Before the employment data and Fed minutes, 2024 forecasts have risen to a 100bp cut. Powell must give optimistic messages about the global economy on Friday, unlike his previous Jackson Hole speech. Although some Fed members do not care much about employment data, it signals excessive tightening for the Fed.
After many central banks like the EU and Canada made their first rate cuts of the year, the Fed has kept rates at their peak for over a year. Data showing inflation falling below 3% and an unemployment rate reaching 4.3% indicate there is no escape from a rate cut.
If BTC can close above $63,000, it may find support for the $70,000 resistance.
