Bitcoin breaks $60K mark once again

Bitcoin breached the $60K mark at late Friday’s trading session. The digital asset maintained an upward trend this week.  US macroeconomic data gave markets confidence that the Federal Reserve would guarantee policy easing at the interest rate meeting the following week.

The digital commodity gained some ground over the weekend following the decline that sent Bitcoin down $52.5K on Friday of last week, but then really picked up steam on Monday, rising over $4K in a single day and momentarily surpassing $58K. The US CPI data was released on Wednesday, which caused the mid-week price action to be quite erratic. Bitcoin had multiple ups and downs throughout this period.

This followed a trend reversal in US spot Bitcoin ETFs, which had net outflows of more than $400 million, the previous week. In addition, MicroStrategy revealed plans to make a significant, over $1.1 billion Bitcoin buy.

Despite a decline from earlier in the week, the most recent projections from CME Group’s FedWatch Tool indicated a 0.25% rate drop on September 18 as opposed to a larger 0.5% rate cut.

The Kobeissi Letter noted that the S&P 500 gained about $2 trillion in value in the last week alone, an illustration showing a strong risk-asset attitude.
According to a report released this week, economists Marion Laboure and Sai Ravindran of Deutsche Bank predict that the price of Bitcoin may continue to rise this year.

The statement read, “We expect Bitcoin prices to remain high due to regulatory changes, new ETF approvals, future rate cuts by central banks, and a potential Trump presidency due to his pro-crypto policies and preference for lower Fed funds.”

A major item on the schedule for the coming week is the Fed’s decision about interest rates on Wednesday. Markets are completely priced in for an interest rate decrease, but traders disagree over whether the Fed would choose to reduce rates by 25 basis points or by a more significant 50 basis points.

A significant reduction in interest rates may favor riskier assets like cryptocurrencies, such as Bitcoin. A modest 25 basis point drop appears less definite regarding its impact because risk markets may applaud the move anyway or view it as excessively cautious.