BTC price recently surged to the $65,000 mark, surprising many with its rapid increase. Investors eagerly awaiting closures above $60,000 are now watching the price test $64,777. The primary reason for the rise is the Fed’s clear statements about lowering interest rates.
Cryptocurrencies Are Rising
When the Fed minutes were released on Wednesday, I recalled writing that “this is a turning point like the minutes we saw in January 2022.” Back then, we received signals that tight monetary policy would stifle risk markets. In these latest minutes, we clearly saw that the Fed is now switching to a monetary easing mode.
Before Fed Chairman Powell made his statements in the last 24 hours, Fed members consecutively announced that they should start lowering interest rates. Then, in his Jackson Hole speech, Powell said the time had come. Although he did not give a signal about the speed, he clearly conveyed to the markets that they would start lowering rates as of September.
Now, as markets expect a 100bp cut before the year ends, we are entering the weekend with a BTC rise. On September 18, we will try to get details about the rate cut speed from the messages given at this meeting. If market expectations are supported here, BTC could test $73,777 before the end of September.
