As summer fades and fall begins, the crypto market is about to get exciting. Bitcoin’s wild ride isn’t over, and September could be the month everything changes. With the Federal Reserve possibly cutting interest rates, big moves are expected in the crypto world. Get ready for some thrilling shifts within the crypto market.
Federal Hint Rate Cuts In Sept
One of the most significant factors influencing the crypto market this September is the potential shift in Federal Reserve policy. At the recent Jackson Hole meeting, Fed Chair Jerome Powell stated that “The time has come for policy to adjust,” which suggests that the Fed might be considering rate cuts.
While Powell suggested that a rate cut could occur in September, but even noted that the final decision will depend on upcoming economic data.
With U.S. money market funds reaching a record high of over $6.2 trillion, investors are betting on lower rates. Meanwhile, expectations of lower interest rates usually weaken the dollar making high-risk assets more lucrative such as BTC and ETH.
Spot Bitcoin Inflow Surge
Over the past 8 days, Bitcoin ETFs have experienced a massive influx of capital, totaling $17.86 billion by the end of August. This surge shows that traditional financial sectors are still very interested in Bitcoin.
According to the Kobeissi Letter, institutional investors are adjusting their portfolios in response to this trend.
This strong backing from Wall Street could help shield Bitcoin and Ethereum from potential declines and underscore their growing appeal as alternative investments.
Stablecoins: A Key Indicator of Crypto Health
In August, the total market cap of stablecoins grew from $163.8 billion to $169.8 billion, adding $6 billion. This increase shows that more money is flowing into the crypto market.
Since stablecoins help traders and investors move in and out of positions, their growth suggests that liquidity in the crypto space is strong.
Bitcoin Mining Difficulty To Surge
In terms of mining, Bitcoin’s difficulty is expected to rise slightly in the coming days, reflecting strong ongoing network activity. As of now, Bitcoin’s difficulty stands at 89.47 trillion at block 858,940, with a 0.93% increase over the past 24 hours.
Bitcoin: Ready for a Surge?
Looking at Bitcoin’s monthly chart, September has consistently been a month of correction. Over the past decade, Bitcoin has never ended September with a gain. This trend suggests that September serves to flush out panic sellers and establish a solid support level before a potential bull run begins.
Perhaps, Bitcoin’s recent performance shows a tight trading range between $59,013.54 and $60,927.12, reflecting some consolidation.
However, the cryptocurrency is trading above key moving averages, including the 50-period, 100-period, and 200-period SMAs. This suggests that short-term bullish sentiment is in play, with the potential for a strong move if these levels hold.
As of now, Bitcoin is currently trading at $59,489, showing a slight increase over the past 24 hours. However, despite this recent price rise, trading volume has dropped by 19%. The market cap stands at $1.17 trillion.
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