Bitcoin Jumps to $77,000 After Interest Rate Cut
08 Nov, 2024 ● Crypto News
On Nov. 8, Bitcoin hovered around $76,000 as “high leverage liquidity” developed around the spot price.
Data from TradingView indicated modest gains for Bitcoin, which mostly held steady after the daily close.
Similar to the previous day, Bitcoin experienced a sudden surge during the Wall Street trading session, reaching new all-time highs just shy of $77,000 on Bitstamp.
This volatility occurred as the United States Federal Reserve announced a 0.25% interest rate cut, a move widely anticipated by markets.
After the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell noted that the risk factors affecting inflation and employment were “roughly in balance.”
“Recent indicators suggest that economic activity has continued to expand at a solid pace.
Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low,” he said in his prepared remarks, adding that “Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated.”
According to Cointelegraph, the market had anticipated the Fed’s decision.
Data from CME Group’s FedWatch Tool showed that on Nov. 8, there was a consensus expecting another 0.25% rate cut at the next FOMC meeting in mid-December.
The Kobeissi Letter, a trading resource, cautioned that the Fed’s “pivot” on interest rates could still be uncertain if longer-term inflation trends begin to rise.
“Ultimately, we expect to follow long-term inflation expectations which have not ticked higher yet,” it stated in an X thread, adding that if these expectations, currently at 2.1%, start to increase, the “Fed pivot” could be at risk, adding: “This is a big IF, but anything is possible as we head into 2025.”
Despite macroeconomic factors, Bitcoin remained unfazed, achieving a new all-time high and its highest daily close ever.
At the time of writing, BTC/USD was up 8% month-to-date, with Q4 gains at 19.6%, as noted by CoinGlass.
CoinGlass data also showed substantial liquidity forming on both sides of the spot price in exchange order books.
The platform described this as “high leverage liquidity,” suggesting that avoiding trading might be the “best strategy” for now.
Amid discussions of these liquidity shifts, the trading account CryptoMutant anticipated a small price increase before a possible market correction.
“In case of correction, the 72,600 level must hold to keep the sentiments positive,” they said.
Another trader, CrypNuevo, noted the potential for a “long squeeze” — a cascade of liquidations of long positions — before the weekly close.
Sources:
https://cointelegraph.com/news/btc-price-sets-fresh-all-time-high-near-77k-long-squeeze
https://www.tradingview.com/symbols/BTCEUR/?exchange=BINANCE
https://www.federalreserve.gov/newsevents/pressreleases/monetary20241107a.htm
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
https://x.com/KobeissiLetter/status/1854659479725285580
https://www.coinglass.com/today
https://x.com/coinglass_com/status/1854789926514311214
