Crypto traders are increasing their bets that Bitcoin’s price will hit $100,000 before the year ends. This follows BTC’s reclaim of the psychological $90,000 level, with optimism that the Fed will lower rates at next month’s FOMC meeting. Odds Of Bitcoin Hitting $100k Rise To 52% Polymarket data shows a 52% chance that BTC will
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]]>The Ethereum price outlook is heating up as market optimism collides with shifting monetary policy signals. BitMEX co-founder Arthur Hayes has projected that Ethereum could surge to $20,000, citing strengthening market dynamics and favorable macro conditions. The bold forecast comes just as Federal Reserve Chair Jerome Powell adopts a more dovish tone, indicating a possibility of future rate cuts.
Ethereum Price Projected To Hit Five Figures
Hayes has issued a bold Ethereum price forecast, predicting that the second-largest cryptocurrency could soar as high as $10,000 or even $20,000 before the end of the cycle. In a recent interview, the BitMEX co-founder dismissed the notion that Ethereum would need to retest the $3,000 level before making a move toward new highs, pointing instead to its previous rally above $4,000.
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Notably, Ethereum successfully confirmed support at $4,109 after a sharp surge earlier this month. As a result, crypto analysts like Donald Dean project that ETH could climb to $4,867—or even set a new all-time high near $5,706.
As for Hayes, he revealed that he has already re-entered the market, buying back Ethereum after previously taking profits when the asset broke above $4,000. The BitMEX founder emphasized that once Ethereum clears its prior peak, the path upward would resemble “a gap of air,” with limited resistance until significantly higher valuations. This conviction, he argued, is reinforced by the fact that crypto-native firms are actively raising capital to allocate into ETH.
According to Hayes, the ability of these firms to secure funding will only increase if Ethereum breaks into uncharted price territory. His projection of a $10,000 to $20,000 price point is also tied to the political and economic backdrop in the US. The BitMEX co-founder suggested that any digital asset supported by US President Donald Trump would likely benefit from massive speculative inflows, thereby boosting the broader market.
When asked which cryptocurrency he would primarily invest in between Ethereum and Solana, Hayes responded that both digital assets would appreciate during the bull run. However, he revealed that he was more partial to Ethereum, highlighting that the scale of capital chasing ETH made it a more attractive bet.
Powell Speech Signals Softer Fed Policy Shift
While speculations about Ethereum’s next price target, US monetary policy appears to be entering a pivotal phase. Recent reports following the Fed Chair’s speech at Jackson Hole indicate that Powell may be hinting at the possibility of a rate cut.
During his speech, Powell highlighted the shifting balance of risks, acknowledging that while inflationary pressures persist, the slowdown in employment growth requires careful consideration. He further pointed to the effects of higher tariffs, which are beginning to show up in consumer prices, with core PCE inflation rising to 2.9% in July—a 10% increase from the previous month.
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The Fed chair also reiterated that with policy already in restrictive territory, the central bank can “proceed carefully.” Nevertheless, his comments left the door open for an adjustment in stance, with markets widely interpreting them as laying the groundwork for a rate cut at the upcoming FOMC meeting.
Featured image from Unsplash, chart from TradingView
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Bitcoin price is again under selling pressure as the US Federal Reserve prepares for its first FOMC under Donald Trump administration. After facing rejection at $103.5K, BTC looks to retest the lows under $100K. However, if US Fed Chair Jerome Powell announces a dovish monetary policy outlook on Wednesday, BTC and altcoins could see a strong revival ahead.
Meanwhile, Gold continues to extend the rally, up by 37% on the yearly chart and is less than 1% from its record highs. The demand for safe-havens rises as investors brace for volatility during the Fed interest rate decision.
Bitcoin Price Shows Weakness on Charts
Crypto analyst Ali Martinez has highlighted a bearish signal for Bitcoin (BTC) using the TD Sequential indicator. According to Martinez, the indicator has flashed a sell signal on the hourly chart, suggesting BTC could revisit recent lows of around $99,000 in the near term.
As shown in the below chart, the crypto analyst expects the Bitcoin price to bounce back to all-time highs, after taking a support at $99,000. He points to expectations of a dovish stance from the Federal Reserve in its upcoming announcement. In his post on the X platform, Martinez noted:
“The market dumping right before the FOMC meeting feels like manipulation. If the Fed signals a dovish outlook tomorrow, BTC could rally on expectations of looser monetary policy. Still, the Fed is currently expected to keep rates steady at 4.25%-4.5%, with the CME FedWatch Tool showing a 97.3% probability of no change”.
On the other hand, Gold continues to extend its gains, now at over 37%, in the last 12 months. Gold prices are soaring, approaching $2,800 per ounce, with year-to-date gains nearly doubling the returns of the S&P 500. In the case of the US Fed taking a dovish stand, the yellow metal could rally to its all-time highs ahead.
US Fed’s FOMC Meeting on Radar
The DeepSeek scare shook Wall Street earlier on Monday, triggering a massive $1 trillion rout in US chip companies. Although the S&P 500 recovered partially on Tuesday, the FOMC meeting will play a crucial role in deciding the next line of action for the market.
US President Donald Trump has requested an immediate interest rate cut, however, considering the sticky inflationary scenario, US Fed Chair Jerome Powell might decide to delay this decision further.
In late 2024, the Federal Reserve initiated a series of interest rate reductions, starting with a significant 50 basis point cut in September. This was followed by smaller reductions in November and December, bringing rates to a range of 4.50%-4.75%. Projections for 2025 suggest additional rate cuts, potentially totaling another 50 basis points.
BTC Whales Are Accumulating
According to a recent analysis by CryptoQuant, Bitcoin inflows to whale wallets have significantly increased, signaling a phase of accumulation. The trend suggests these inflows are likely originating from over-the-counter (OTC) trades, as large investors position themselves in the market. This could serve as an additional catalyst for the future Bitcoin price rally.
Furthermore, analysts believe that the bull market conditions are not yet over. The bull run aligned with growing participation from U.S.-based entities, including exchanges, banks, and funds, in the cryptocurrency market. The share of Bitcoin holdings by U.S. entities continues to climb, outpacing the holdings of non-U.S. entities, reported CryptoQuant.
Currently, BTC price trades near $102,500, rebounding from a 24-hour low of $100,160. Furthermore, the trading volume has decreased by 45% in the last 24 hours, indicating a decline in interest among traders.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
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.
Bitcoin (BTC) reclaimed $64,000 on Thursday, August 2, following the release of new U.S. job data. The unemployment and nonfarm payrolls data signals a potentially dovish shift in the Federal Reserve’s monetary policy. This increases the odds of a September fed rate cut as teased earlier by Fed Chair Jerome Powell.
U.S. Job Data Overview
The U.S. unemployment rate for July came in at 4.3%, surpassing the expected 4.1%. Moreover, it significantly rose from the previous month’s 4.1%. Furthermore, this represents the highest unemployment rate since October 2021.
Additionally, the seasonally adjusted nonfarm payrolls increased by only 114,000, marking the smallest gain since April 2024. These figures suggest a slowdown in job growth and a potential cooling of the labor market.
Earlier, on Wednesday, August 1, initial jobless claims increased by 14,000 to 249,000 for the week ending July 27. Meanwhile, continuing claims surged by 33,000 to 1,877,000 for the week ending July 20. These rising figures indicate a growing number of unemployed individuals, suggesting potential vulnerabilities in the labor market.
Moreover, the cooling U.S. job data could influence the Fed’s decision-making process, potentially boosting the case for a rate cut. A weaker labor market might prompt the Fed to adopt a more accommodative stance to stimulate economic activity. Thus, it affects investor sentiment across various asset classes, including cryptocurrencies.
A Fed rate cut boosts investments in the cryptocurrency industry. Reduced interest rates lower the appeal of traditional savings accounts and fixed-income investments. This prompts investors to seek higher returns in alternative assets like cryptocurrencies.
Additionally, cheaper borrowing costs can spur more venture capital and institutional investments in the crypto sector, as companies and startups are more inclined to expand and innovate. Also, lower Federal Reserve interest rates can also lead to higher asset prices, making cryptocurrencies a more attractive option for those looking to diversify their portfolios.
Also Read: European Central Bank Braces For Two More Rate Cuts, Is US Fed Next?
Bitcoin Hits $64,000 Amid September Cut Speculations
In the latest meeting, Federal Open Market Committee (FOMC) decided to keep the key interest rate steady at 5.25% to 5.5%. This decision aligns with the Fed’s ongoing efforts to control inflation while balancing economic growth. However, U.S. Fed Chair Jerome Powell indicated that a rate cut in September could be on the table, especially if inflation remains favorable and labor market conditions continue to weaken.
Powell underscored the Fed’s commitment to impartiality. He stated, “We never use our tools to support or oppose a political party, a politician, or any political outcome.” At press time, as U.S. unemployment data came in higher than expected, the BTC price gained 0.18% to $64,805.10 in the 24-hour frame on Thursday.
However, Bitcoin marked a much greater rebound as it has earlier fallen to the $62,000 level during the day. Nonetheless, the favourable U.S. job data propelled BTC close to $65,000, which is a significant milestone amid market uncertainty.
Also Read: Altcoin Whales Prepare for Rally After September Fed Rate Cut
Kritika Mehta
Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.
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.
The world’s largest cryptocurrency Bitcoin (BTC) has witnessed a strong bounceback above $67,000 following the Fed’s dovish commentary on Wednesday. At press time, the Bitcoin (BTC) price is up 8.8% trading at 66,787.80 with a market cap of $1.314. However, the spot Bitcoin ETFs registered net outflows for the third consecutive day in a row.
Bitcoin ETFs See Net Outflows For Third Day
As per data from Farside investors, the net outflows from Bitcoin ETFs on Wednesday, March 20, stood at $261 million. The accumulated net outflows over the past three days amount to $742 million. Specifically, on March 18, there was a net outflow of $154.3 million, followed by a larger outflow of $326.2 million on March 19.
On Wednesday, the Grayscale Bitcoin Trust (GBTC) experienced a noteworthy single-day net outflow of $386 million, contributing to its total historical net outflow of $13.27 billion.
Conversely, the BlackRock Bitcoin ETF IBIT witnessed the highest single-day net inflow among Bitcoin spot ETFs, totaling $49.28 million. This substantial inflow propelled IBIT’s total historical net inflow to $13.09 billion. However, the inflows in the Bitcoin ETFs have dried up significantly this week as the markets remained worried about the central bank’s actions.
On a recent trading day, BlackRock’s iShares Bitcoin Trust (IBIT) experienced its second-lowest net inflow, totaling $49.3 million. This figure was only marginally higher than its lowest daily inflow recorded on February 6 by a mere $4 million. Likewise, the Fidelity Wise Origin Bitcoin Fund (FBTC) also saw a similarly subdued inflow, reaching $12.9 million, marking one of its lowest inflow days.
On Wednesday, BlackRock’s iShares Bitcoin Trust (IBIT) experienced its second-lowest net inflow, totaling $49.3 million. This figure was only marginally higher than its lowest daily inflow recorded on February 6 by a mere $4 million. Likewise, the Fidelity Wise Origin Bitcoin Fund (FBTC) also saw a similarly subdued inflow, reaching $12.9 million, marking one of its lowest inflow days.
BTC ETFs In ‘Dumb Money’
Max Keiser, a prominent Bitcoin maximalist, commented that investors in Bitcoin ETFs prove to be the epitome of ‘dumb money.’ They engage in buying and selling Bitcoin ETFs, often failing to achieve significant gains and experiencing mostly losses. However, this activity generates substantial commissions for brokers. These investors struggle to navigate the volatility of Bitcoin effectively, leading to potential financial setbacks.
As predicted,
ETF buyers are the quintessential ‘dumb money’ who will buy and sell the #Bitcoin ETF’s and realize no gains (and mostly losses) but will generate lots of commissions for brokers.
They can’t surf #Bitcoin’s volatility, and they’ll drown. https://t.co/sUwNMxWIdb
— Max Keiser (@maxkeiser) March 20, 2024
On-chain data provider Santiment reported that in the last 10 days, there has been a net decrease of -311,000 total non-zero coin wallets on the Bitcoin network. While this might worry novice traders, historically, such a trend has been associated with moments of fear, uncertainty, and doubt (FUD) in the market. It suggests that small Bitcoin wallets are often capitulating, selling their coins, while larger wallets are seizing the opportunity to accumulate more.
Over the past 10 days, a net difference of -311K total non-0 coin wallets have dropped off of the #Bitcoin network. To a novice trader, this may appear to be a concern with less overall active participants. However, historically this stat has reflected #FUD moments in the… pic.twitter.com/ZpbCMGU1lX
— Santiment (@santimentfeed) March 21, 2024
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.
The world’s largest cryptocurrency Bitcoin (BTC) has registered a strong bounce back above $67,000 after the dovish Fed commentary on Wednesday, March 20. As of press time, the Bitcoin price is up 8.12% with its market cap soaring past $1.3 trillion once again. On the other hand, altcoins too are rejoicing after a strong bounce back on Wall Street on Wednesday.
Federal Reserve Turns Dovish, Keeps Interest Rates Unchanged
The Federal Reserve (Fed) has opted to maintain interest rates at their current levels, keeping the benchmark overnight interest rate within the range of 5.25% to 5.50%. While the rates remain unchanged, Fed officials anticipate a decrease in interest rates by three-quarters of a percentage point by the end of this year. This forecast reflects their dedication to achieving the U.S. central bank’s 2% inflation target.
The Federal Open Market Committee (FOMC) exhibited a clear dovish stance, indicating a bullish outlook. During Powell’s press conference, he expressed minimal concern regarding the elevated inflation figures observed in January and February, thus emphasizing instead the weaknesses evident in the labor market.
Continued strength in the labor market wouldn’t be a reason to hold off lowering interest rates, said Federal Reserve Chair Jerome Powell, reported CNBC.
All three indices on Wall Street – Dow Jones, the S&P 500, and the Nasdaq – touched record highs on Wednesday, gaining 1% each. Trader sentiment is optimistic as the Federal Reserve’s decision favors equities and strengthens the correlation between cryptocurrency and the S&P 500.
Crypto Market Rebounds Strongly, Bitcoin Shoots Past $67,000
In a dramatic turn of events, the cryptocurrency market witnessed a robust rebound, with Bitcoin (BTC) surging back above the $67,000 mark and Ethereum (ETH) reclaiming the $3,500 level. The resurgence appears to be predominantly driven by spot demand, as reflected in stable funding rates. Analysts from QCP Capital anticipate confirmation of this trend through forthcoming BTC spot ETF flow data.
Despite recent headlines regarding regulatory concerns, particularly the SEC’s deliberation on classifying ETH as a security, apprehensions surrounding Ethereum have notably eased. This resilience further underscores the market’s confidence amidst regulatory uncertainties.
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.
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