Fun

Bitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lows

News Feed - 2024-08-01 11:08:44

William Suberg9 hours agoBitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lowsBTC price weakness failed to resolve the day after FOMC, with Bitcoin liquidity grabs still the main talking point for traders.8295 Total views8 Total sharesListen to article 0:00Market UpdateOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onBitcoin (BTC) stayed lower at the Aug. 1 Wall Street open as crypto shrugged off fresh central bank interest rate cuts.BTC/USD 1-hour chart. Source: TradingViewDovish Fed offers no respite to Bitcoin bulls


Data from Cointelegraph Markets Pro and TradingView showed BTC’s price lacking momentum after dropping 2.4% the day prior.


Downside persisted despite the United States Federal Reserve adopting a dovish tone at the latest meeting to decide on interest rate changes.


In a press conference following the Federal Open Market Committee’s (FOMC) decision to leave rates unchanged, Fed Chair Jerome Powell hinted that a cut could come at the next meeting in September.


“We have stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2 percent,” he said in a prepared statement.“The second-quarter’s inflation readings have added to our confidence, and more good data would further strengthen that confidence. We will continue to make our decisions meeting by meeting.”Fed target rate probabilities. Source: CME Group


Markets, which had already priced in 100% odds of a September cut, saw this ultimately being 0.25%, per data from CME Group’s FedWatch Tool.


While US equities reacted well to the event, crypto showed little interest in following suit, with BTC/USD hitting local lows of $63,400 — its lowest since July 19.


“The mental illness continues. Historically, liquidity sweeps fail if they’ve been endlessly frontrun,” popular trader Crypto Chase summarized to X followers on the day.“I don’t have a strong read here, but I think anywhere from mid 61’s to 59 is possible. Bids simply depend on how aggressive/confident you are. Accept below 59 is a bad look.”BTC liquidation heatmap (screenshot). Source: CoinGlass


Fellow trader CrypNuevo, meanwhile, saw the potential for a short squeeze from near current levels.


Noting that the bulk of liquidation levels lay above, not below, the spot price, he predicted that such an event could come before the weekend.BTC/USD with liquidity data. Source: CrypNuevo/XCrypto markets “on edge”


Zooming out, trading firm QCP Capital said that inflows into the newly launched US spot Ether (ETH) exchange-traded funds (ETFs) could provide a short-term narrative for crypto market sentiment.


Related: Bitcoin whales go on ‘unprecedented’ $23B July buying spree — New data


“Unfortunately, the rally in equities was not felt in crypto. Crypto experienced a broad sell-off overnight and into this morning,” it wrote in its latest bulletin to Telegram channel subscribers.“The market remains on edge as traders pay close attention to daily ETH ETF outflows and further supply pressures from Mt Gox and US government.”S&P 500 vs. BTC/USD 1-day chart. Source: TradingView


QCP saw ongoing posturing by US presidential candidates playing a key role for crypto going forward, with markets “potentially rangebound until the next catalyst.”


“Longer-term, discussions among US Presidential candidates and Senators regarding a sovereign Bitcoin reserve, and the potential for other nations to follow suit, could fundamentally alter the cryptocurrency landscape,” it continued.“The establishment of a U.S. or sovereign ‘put’ on BTC prices may have significant implications, potentially making accumulation on dips a strategic investment approach.”


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Federal Reserve# Bitcoin Price# Markets# InflationAdd reaction

News Feed

Biggest Movers: XRP Rises 7%, While LUNA Falls by the Same Amount
Biggest Movers: XRP Rises 7%, While LUNA Falls by the Same Amount Although cryptocurrency markets started the weekend lower, XRP was able to avoid the red wave, rising by as much a
Blackrock’s Chief Investment Officer: Cryptocurrency Is Here to Stay, Bitcoin Could Replace Gold
Blackrock"s Chief Investment Officer: Cryptocurrency Is Here to Stay, Bitcoin Could Replace Gold Blackrock’s Chief Investment Officer, Rick Rieder, said cr
RippleX addresses XRP ledger’s AMM pool error, advises user caution
Amaka Nwaokocha8 hours agoRippleX addresses XRP ledger’s AMM pool error, advises user cautionDue to the continuing technical issue, RippleX has recommended its users no longer deposit funds into the affected AMM pools.
Cointelegraph Innovation Circle8 hours ago7 crypto leaders share tips to help Web3 companies prep for tax seasonWeb3 companies face unique challenges when it comes to prepping for tax season, and they need to employ smar
Ana Paula Pereira3 hours agoCoinbase sought FTX Europe acquisition after bankruptcy: ReportTo expand its derivatives business overseas, Coinbase attempted to acquire FTX Europe twice since it filed for bankruptcy in Nove
Kevin Hart Learns Bitcoin Is a Legit Investment, Not ‘Voodoo Money’ in an All-Star Telethon
Kevin Hart Learns Bitcoin Is a Legit Investment, Not "Voodoo Money" in an All-Star Telethon Popular actor Kevin Hart gave bitcoin a boost this weekend during an
Crypto Gets A Green Light From Spanish Banking Giant
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Tether Reveals USDT Stablecoin Is Now Supported by Polkadot
Tether Reveals USDT Stablecoin Is Now Supported by Polkadot Tether is now live on 15 different blockchain networks, according to the company’s latest announcement on Friday
India, UAE Collaborate to Boost Cross-Border Central Bank Digital Currency Transactions
India, UAE Collaborate to Boost Cross-Border Central Bank Digital Currency Transactions India’s central bank, the Reserve Bank of India (RBI), and the Central Bank of the United
Billionaire’s suit over scam crypto ads on Meta dismissed in Australia
Derek Andersen7 hours agoBillionaire’s suit over scam crypto ads on Meta dismissed in AustraliaAndrew Forrest’s image was used in an ad promoting crypto scams. He has another suit against Meta in a California distric
A New Terra Network Is Coming With Support From Major Exchanges, LUNA and UST Holders Eligible for Airdropped Tokens
A New Terra Network Is Coming With Support From Major Exchanges, LUNA and UST Holders Eligible for Airdropped Tokens According to a recent announcement from the Terra blockchain te
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Week
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Week Volatility in crypto markets remained high on Monday, as bitcoin was mostly in the red to start the wee