Welcome to Extreme Investor Network, where we provide you with unique insights and analysis on the latest trends in the stock market and trading world. Today, we are diving into the world of cryptocurrency, specifically Bitcoin (BTC) and how rising investor bets on a September Fed rate cut are impacting its demand.
Recently, IBIT and other investors have been actively acquiring BTC, even amidst a 20% drop in price with it still remaining below $60k. The reason behind this increased demand for BTC can be attributed to the rising expectations of a September Fed rate cut. According to the CME FedWatch Tool, the chances of a rate cut in September have surged from 77.7% to 96.3% in just a week, fueling the demand for BTC-spot ETFs.
While this boost in demand is positive for BTC, investors should remain vigilant and keep a close eye on real-time data and expert commentary to adjust their trading strategies accordingly. It’s crucial to stay informed in order to effectively manage risks in the crypto market.
In terms of technical analysis, BTC is currently below the 50-day and 200-day EMAs, indicating a bearish trend. However, a break above the 200-day EMA could push the price towards the $60,365 resistance level, with a potential break above that level leading to a challenge of the 50-day EMA. On the flip side, a drop below $55,000 could open the door for a test of the $52,884 support level.
With a 39.52 14-Daily RSI reading, BTC seems to be flirting with the idea of dropping below $55,000 before potentially entering oversold territory. Keeping an eye on investor sentiment towards the Fed rate path and demand for US BTC-spot ETFs will be crucial in the coming days.
Stay tuned to Extreme Investor Network for more in-depth analysis and market insights to help you stay ahead of the curve in your trading journey.