Bitcoin
Bitcoin Price Climbs Above $27,000 Ahead of the FOMC Monetary Policy Meeting
Bitcoin price jumped more than 3% on Monday, hitting its highest level since August 2023 ahead of the highly anticipated FOMC meeting. At press time, the premier cryptocurrency was trading 2.70% higher at $27,244.20. The digital asset has gained nearly 5% in the month to date and 64.71% in the year to date. Bitcoin’s total market cap has climbed by 3% over the past 24 hours to $531 billion, while the total volume of the asset traded over the same period increased by almost 100%.
Fundamentals
Bitcoin price was showing signs of recovery on Monday from the losses made in the last cryptocurrency market dip. Bitcoin flipped above the important level of $27,000, while Ethereum held above important support levels. The overall cryptocurrency market was in the green with the global crypto market cap up by 2% to $1.08 trillion for the day, while the total crypto market volume increased by more than 56%.
Even so, the Crypto Fear & Greed Index, which is a major measure of the crypto market sentiment by participants, was in a fear level of 38, almost like last week’s reading. This points to a continued decline in risk appetite by investors, which could prompt them to sell further.
Despite Monday’s bullish rally, interest rate decisions due later in the week may introduce downward pressure on cryptocurrencies. The US Federal Open Market Committee (FOMC) is slated to commence its two-day monetary policy meeting on Tuesday. Investors will be closely watching the meeting, hunting for clues about the economic outlook and the Fed’s interest rate path.
A string of stronger-than-expected economic data released over the past few days renewed worries about further interest rate hikes this year by the central bank. Even so, markets are pricing in a 99% chance of a pause in rate hikes by the Fed this month. Notably, expectations for further hikes in November are growing.
The Bank of England is also expected to announce its interest rate decision later this week. Like most risk assets, cryptocurrencies are sensitive to rate expectations, so hawkish tones by the central banks could leave investor sentiment bearish.
Bitcoin Price Outlook
The daily chart shows that Bitcoin price managed to break the important psychological level of $27,000, promoting further increases. The crypto asset hit an intraday high of $27,409 earlier in the day before pulling back slightly. Bitcoin has managed to cross above the 50-day and 200-day exponential moving averages, while its RSI moved above the signal line and the neutral level.
Consequently, I expect the current bullish trajectory to be short-lived amid macroeconomic concerns. As such, the Bitcoin price is likely to pull back below the immediate support level of $26,426 in the short term. If this happens, bears will be eyeing the next support at $25,825.60. However, a breakout above the important level of $28,000 will invalidate my cautiously bearish thesis.
BTC Price Chart
Bitcoin price has been showing signs of a potential short-term recovery over the past few days and even tapped its highest level in two weeks, above $26,500. The premier cryptocurrency has gained nearly 2% over the past week, erasing some of the losses made in the previous days. Even so, the asset remains 9% below in the month to date. Bitcoin’s total market cap has climbed by more than 1% over the last day to $518 billion, while the total volume of BTC traded over the same period decreased by more than 9%.
Inflation Concerns
Like most major altcoins, Bitcoin price noted a slight bearish initial response to the US Consumer Price Index (CPI) data published on September 13. Data released by the Bureau of Labor Statistics (BLS) showed headline inflation by the CPI came in at 3.7%, ahead of the predicted 3.6% year-on-year and higher than July’s 3.2% rate. Annual core CPI, which excluded food and energy prices, decreased to 4.3% in August, in line with forecasts and down from July’s 4.7% reading.
The Producer Price Index (PPI) data released on Thursday suggested bearable levels of inflation following a monthly increase of 0.7% and an annual increase of 1.6% in August. The monthly reading was higher than the estimated 0.4% increase. The core PPI came in at 0.2% for the month, in line with analysts’ expectations.
Retail sales data also published on Thursday…
Bitcoin price has been struggling to break above the crucial resistance level of $26,500 for the past few days. The premier cryptocurrency has slumped by more than 13% in the month to date but remains 56% higher in the year to date. Bitcoin’s total market cap is a formidable $503 billion, down by more than 20% compared to its highest level so far this year of $612 billion. At the time of writing, the Bitcoin price was trading 1.50% lower at $25,797.25.
Fundamentals
Just like most altcoins, Bitcoin, the biggest cryptocurrency by market cap, has been in consolidation mode in recent trading sessions amid a strong bear market. Ethereum, the largest altcoin by total market cap, has been hovering below the important resistance level of $1,700 after facing a strong rejection at the level. According to Coinmarketcap, the global crypto market cap remains lower at $1.04 trillion, while the total crypto market volume increased slightly over the last day.
The Crypto Fear & Greed Index, which is a key measure of the crypto market sentiment by its participants, was at a fear level of 37 on Friday. This is a slight decline from the fear level of 40 recorded earlier this week. Additionally, it indicates that the risk appetite among investors has inched lower compared to last month’s neutral level of 49.
Focus will now be on the US Federal Reserve ahead of its two-day policy meeting…
Bitcoin price has been in the green over the past 24 hours, breaking above the crucial level of $27,265.50 amid improved crypto market sentiment. Bitcoin’s total market cap has jumped by more than 6% over the last day to $534 billion, with the total volume of the asset traded over the same period up by more than 184%. At press time, Bitcoin was trading at $27,450 after climbing by more than 6% over the past day.
SEC vs Grayscale
Bitcoin price has posted significant gains over the last day, recovering some of the losses made over the past few weeks. The BTC price surged after the US Court of Appeals for the DC Circuit ruled in favor of the crypto investment giant Grayscale against the US Securities and Exchange Commission (SEC). The court ruled that the SEC was wrong to deny Grayscale clearance to convert its Bitcoin trust to EFT.
Bitcoin’s price jumped more than 7% following the news, lifting cryptocurrencies broadly as well as crypto equities higher. Investors and other market participants have been closely watching the Grayscale versus SEC lawsuit as a fundamental catalyst that would restructure the cryptocurrency market hauled by low volatility and liquidity. The cryptocurrency market was in the green on Wednesday, with the global market cap jumping by more than 5% to $1.09 trillion and the total crypto market volume increasing by 132%. Bitcoin’s dominance has also improved over the same…
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