The cryptocurrency market experienced a significant rally after the Federal Open Market Committee (FOMC) announced a 50 basis point interest rate cut. This decision led to noticeable price movements among major digital assets. Bitcoin (BTC) surged past $62,000, while Ethereum (ETH), Solana (SOL), and XRP recorded gains ranging between 1% and 4%. Consequently, the global crypto market capitalization increased by 3%, reaching $2.14 trillion at the time of writing.
Bitcoin traded at $62,027.69, with a 24-hour trading volume of $46.33 billion. The asset’s price has risen by 2.74% in the last 24 hours and 6.56% in the previous week. This increasing momentum has allowed experts to take a more realistic view of the market’s prospects in the future months. Technical indications suggest that Bitcoin’s positive trend will continue.
Also Read: BTC Crosses $61K: Why Did Bitcoin Price Surge Today?
Market Analysts Highlight Technical Patterns
Trader Bluntz’s technical analysis highlighted that BTC has remained in an area of correction for several months. The price has traded in a price channel of two downtrending lines. In the chart, the price of Bitcoin oscillated between the upper and lower bounds of the channel several times, touching the lower bound but bouncing back. Thus, over and over, the market seems to show signs of a consolidation period depending on the current cycle.
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Source:@Bluntz_Capital
It is crucial to note that many analysts believe the current structure may conform to the Elliott Wave pattern. According to this technical theory, Bitcoin is in its impulsive phase, which often signifies a particular trend’s start. This analysis could indicate that the price of Bitcoin is likely to increase further, implying a bullish scenario.
As the market responds to the move, the increasing enthusiasm is also in line with the overall thinking that lowering interest rates could positively impact cryptocurrency assets. Due to the reduced interest rates, this s has brought back interest in using digital currencies, especially bitcoins.
In conclusion, the FOMC’s rate cut has directly impacted the crypto market, fueling gains across key assets and driving Bitcoin to a new level of optimism.
Also Read: BitGo Set to Launch USDS Stablecoin with Unique Rewards System
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.