Bitcoin price edged higher today after a volatile trading note over the week. As of writing, the crypto crossed the $59,000 mark, with anticipation soaring over a potential rate cut by the US Federal Reserve at their upcoming meeting. Despite that, some looming concerns have kept some investors at the sideline, who are potentially looking for further cues before making their bets.
Bitcoin Price Recovers Amid Fed’s Rate Cut Bets
Bitcoin price started to recover today, as the latest US PPI and CPI data showed that the inflation is cooling. A recent QCP Capital report showed that the recent inflation data has sent the equities towards their all-time highs. In addition, the dovish stance of the global central banks like the Reserve Bank of New Zealand also boosted the market sentiment.
However, the recent transfer of 10,000 BTC linked to Silk Road, valued at around $591 million, by the US government to a Coinbase wallet has renewed concerns. A flurry of market experts views this move as a potential selloff by the government. However, there is no confirmation of selling yet.
Despite that, the market is concerned over the remaining 203.239K BTC and other crypto assets still held by the US government. If the government decides to dump its holdings, it could trigger massive downward pressure on the broader crypto market, let alone the BTC price.
Meanwhile, some market pundits are bullish on the crypto market’s future, given the rising bets over the Fed’s potential rate cut in September. The cooling inflation figures have bolstered market confidence recently. According to the CME FedWatch Tool, there are 75% odds of a 25 bps rate cut by the central bank at their upcoming meeting, with the remaining percentage betting over a 50 basis point cut.
In addition, the recent dovish comments by the Fed officials have further cemented bets. Recently, Chicago Federal Reserve President Austan Goolsbee said that the Fed should start trimming the policy rates soon, citing the current economic scenario of the nation.
Will BTC Continue To Rise?
The market is now looking for cues if the latest rebound will continue in the coming days. Although Bitcoin price has noted recovery after tumultuous trading lately, the likelihood of the momentum’s continuation will depend on several macroeconomic factors.
For instance, next week’s US PCE inflation figures will play a key role in deciding the future of the global financial market. If the data comes in tandem with the previous inflation figures, it is likely to boost the market sentiment while sending the crypto prices higher. However, if it doesn’t come as per the market expectations, it could cause a massive selloff in the broader financial sector.
As of writing, BTC price was up 1.39% to $59,411, with its trading volume dropping 36% to $22.29 billion. Notably, the crypto has dropped below the $57,000 mark this week, after the US CPI data showed cooling inflationary pressures in the US.
Rupam Roy
Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
