Bitcoin price action is on the minds of traders everywhere.
It’s an exciting time for anyone looking for a quick stint of profits.
Here’s the latest you should know about the market.
Jerome Powell’s Speech
Our biggest player in the financial industry gets eyed again as Bitcoin rises.
The Federal Reserve is making its indication to the market. Interest rates will be visited again in September, and the question on investors’ minds is “high or low?” Though the U.S. economy avoided a recession post COVID, it did cost investors a lot.
You already know the buzzword floating around—inflation.
The dollar index sat well at 106% for 2024, but Chairman Jerome Powell now backs off. There’s the sentiment that we can expect lower rates by September, easing tensions and likely to spur business activity in Q4. New data suggests that the Fed is likely to hit its 2%-inflation target.
As it has for the best Bitcoin rallies, the U.S. Dollar index fell to 103.08% from 106.30%. This is as Bitcoin rose, making the expected move for a stable market.
$34-Trillion Debt Rises In the United States
As the U.S. Reserve sets to lower rates, it faces an uphill battle against rising U.S. debt.
From the mouth of BlackRocks’ CEO, Larry Fink,
“The U.S. deficit is the largest in the world, growing at the fastest rate in the world and we need to be finding ways of minimizing the role of the deficit on the economy. The public deficits are just growing too fast as a percentage of GDP.”
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The market data is out; $34 trillion is currently at risk in the currencies market.
Investors are looking to put their money somewhere as the USD loses momentum.
Though Bitcoin isn’t the only option, it serves as the ideal one on the table.
Janet Yellen, the U.S. treasury secretary alluded to this with concerns that Russia is stabilizing its economy through Bitcoin. This bypasses any limitations the Asian nation would have with sanctions.
Global nations agree that there’s a decline in “Dollar dominance” for a number of reasons. The chief among them are nations’ ability to bypass sanctions with crypto.
That $1 trillion every 100 days is the pace of U.S. debt remains to be seen, but eyes are open.
Where Is Bitcoin Price Action Now?
We can safely say $65,000 is the targeted starting point for BTC.
On the low end, you’ve got an active zone between $59,000 and $58,000. Here is where prices will have to battle first before falling lower. On the high end, we’re looking at a retest of $72,000.
Though BTC will certainly get some pushback if it breaks $70,000 again, keep in mind that the longer trend is waiting to be tested at just below $75,000. On the upside, prices could rise but not necessarily in a rush.
The coming weeks may show a slow, sluggish BTC.
This holds especially true if prices get to $73,000 in under a day.
For those concerned about a lower performance, the market has to break down to roughly $45,000 before BTC profits from 2024 come under threat.
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