In the past 24 hours, the cryptocurrency market experienced a notable surge in Bitcoin’s price, soaring by 10% from a low of $60,805 to a peak of $68,250.
This significant price movement can be attributed to several key factors, including the recent Federal Open Market Committee (FOMC) meeting, a significant shift in the Coinbase Premium, and Bitcoin’s technical breakout from a downtrend channel.
FOMC Meeting
Chairman Jerome Powell’s optimistic remarks sparked a rally in Bitcoin prices. Following the release of higher-than-expected inflation data in the US, investors initially hedged their positions ahead of the FOMC event. However, Chairman Powell’s dovish speech reassured the market, leading to a bullish sentiment. Crypto analyst Furkan Yildirim summarized the key points of the FOMC meeting, highlighting a projection of three rate cuts in 2024 and a unanimous decision to leave the federal funds rate unchanged.
Coinbase Premium Turns Positive
The shift in the Coinbase Premium to positive territory indicates increasing demand for spot Bitcoin ETFs, potentially fueling further price gains. CryptoQuant analyst Maartunn noted the positive Coinbase Premium, suggesting growing demand for spot Bitcoin ETFs. The Coinbase Premium is crucial for Bitcoin prices as it reflects demand from spot Bitcoin ETFs before official data is released.
BTC Price Breaks Out of Downtrend Channel
On the technical side, Bitcoin’s breakout from a parallel downtrend channel signals a bullish trend. Traders and analysts are closely monitoring this breakout, with hopes for further price gains. Daan Crypto Trades highlighted the breakout from the downtrend channel, emphasizing the importance of a successful retest for further upward movement.
At the time of writing, Bitcoin is trading at $67,397, reflecting the market’s optimism following these developments. However, investors are reminded to conduct their own research and consider the risks before making any investment decisions.
