Summary:
Bitcoin reclaimed $60,000, rising 4.3% to $60,394.41.
Former President Donald Trump announced a new crypto venture, boosting market sentiment.
The Federal Reserve's policy meeting may lead to a significant rate cut, impacting risk assets like bitcoin.
Market expectations indicate a 63% chance of a 50 basis point reduction in rates.
Bitcoin's price has fluctuated between $55,000 and $70,000 this year amid various catalysts.
Bitcoin Breaks the $60,000 Barrier
Bitcoin reclaimed the $60,000 mark on Tuesday as investors eagerly awaited details on the Federal Reserve's rate cutting plans. The flagship cryptocurrency saw a 4.3% increase, reaching $60,394.41 at one point, even climbing as high as $61,335.83.
This upward momentum began on Monday night when former President Donald Trump announced his new crypto venture, World Financial Liberty Coin.
Fed's Policy Meeting
Bitcoin's rise coincided with the Federal Reserve's two-day policy meeting, where a rate cut is widely anticipated for the first time in four years. Such a move could potentially boost risk assets, including bitcoin.
Philipp Pieper, co-founder of Swarm Markets, commented, "Bitcoin is likely to react to the news of a Fed rate cut with some retrenchment as the short-term market dynamics filter out. However, the longer-term implications of easing monetary conditions lend themselves to a fresh bull cycle for bitcoin, ether, and the rest of the market."
Historically, bitcoin has shown correlations with major tech indices like the Nasdaq, often moving in line with monetary conditions as investors seek yield in lower-rate environments.
Market Expectations
The market remains divided on the Fed's potential rate cut, with traders estimating a 63% chance of a 50 basis point reduction. Bitcoin has fluctuated between $55,000 and $70,000 this year, with investors anticipating factors such as Fed rate cuts, the growth of bitcoin ETFs, and the upcoming U.S. presidential election to influence the crypto market.
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