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The fluctuation in BTC price allows some altcoins to gain over 5%. The price is above $67,000. Hours later, we will see the listing on exchanges following SEC’s approval for ETH ETF. However, this article focuses on China’s interest rate path, which is significant for crypto.
China’s Interest Rate Cut and Crypto
China’s interest rate cut was a surprise and became one of the price catalysts for crypto rise. The People’s Bank of China (PBoC) is reducing the seven-day reverse repo rate by 0.1% to 1.7%, and one to five-year interest rates were also revised. Macquarie Group’s chief China economist Larry Hu evaluated the recent development as follows;
“Today’s cut is likely an unexpected move due to the sharp slowdown in growth momentum in the second quarter and the call to ‘achieve this year’s growth target’ by the third meeting.”
Holger Zschaepitz says it has been a year since China’s last rate cut, and the stock market is not very enthusiastic. The US has not yet started cutting rates by following China, Canada, and the EU, but a 25bp cut is almost certain in the September meeting.
Crypto commentator TMXC Trades wrote the following after China’s move;
“As we enter 2024, investors were betting on a major coordinated global easing cycle that would reverse half or more of all tightening (after completely underestimating the hikes). Today, in mid-July, almost none of these have materialized.”
Cryptocurrency Predictions
Rekt Capital noted that the five-week pullback was compensated in just two weeks, sharing a renewed bullish sentiment. According to him, by September, or at the latest in 2 months, Bitcoin (BTC) will break new all-time records. This situation should also open the door to new records for altcoins.
“Any drop to retest $65,000 would not be unusual, but typically these Weekly Closures have been upward to $71,500.”
Michael Poppe also confirms the ATH target due to BTC returning to the bullish range. According to the analyst, if the $65,000 level can be maintained and the weekly closure is within the current range, BTC will target $73,777 again.
