Bitcoin has recently surged to a high of $64,955, largely due to Federal Reserve Chair Jerome Powell’s speech signaling potential rate cuts in September. This news has ignited a positive momentum in the crypto market, with its total market cap climbing over 4% to $2.27 trillion.
Altcoins Join the Rally
Major altcoins like Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) have also experienced substantial recoveries. The Crypto Fear and Greed Index notably bounced from 34 (fear) to 56 (greed) in just a single day, reflecting a strong rebound in market sentiment.
Why Bitcoin’s Price Is Rising
Bitcoin’s price has been targeting the $62,000 mark this month, with a notable 5% increase in the last 24 hours, pushing it close to $65,000. Here are the top five reasons fueling this rise:
1. Positive Sentiment from Fed Announcements
The recent Federal Open Market Committee (FOMC) Minutes and Jerome Powell’s Jackson Hole speech have provided strong indications of impending Fed rate cuts. These signals have significantly boosted Bitcoin’s price.
Dovish remarks from Fed officials, including Neel Kashkari and Mary Daly, along with their consensus on potential rate cuts starting in September, have encouraged cautious buying by investors. Although Powell did not specify exact cut timings, he highlighted a shift in monetary policy due to slowing inflation and a weakening labor market.
2. Technical Strength in Bitcoin Charts
Bitcoin charts are showing robust technical indicators with current trading above the $62K support level and approaching resistance at $65K. The daily timeframe reveals Bitcoin trading above the 50-DMA, 100-DMA, and 200-DMA, with expectations of a potential ‘Golden Cross’ pattern that could signal a long-term bull market.
3. Optimism for a $100K Bitcoin Price
Currently trading above $64,000, Bitcoin is just 12% shy of its all-time high of $73,750. Options traders are highly optimistic, with forecasts suggesting Bitcoin could hit $100K by December. According to Deribit, significant option trades are betting on this potential rise, including a large trade involving call options.
4. Impact of US Election Dynamics
The recent withdrawal of pro-Bitcoin Robert F. Kennedy Jr. from the presidential race and his endorsement of Donald Trump has shifted political support, influencing Bitcoin’s price positively. The latest Polymarket data shows Trump leading Kamala Harris, which could impact Bitcoin sentiment.
5. Strong Bitcoin ETF Inflows
On Friday, the Spot Bitcoin ETF saw $252 million in net inflows, bringing the weekly total to $506.4 million. This consistent inflow underscores robust confidence from both institutional and retail investors. Notably, BlackRock and Fidelity have reported significant ETF inflows, further supporting Bitcoin’s price stability above $60,000 this week.
