Bitcoin around the $61,000 mark before stabilizing, as investors eagerly await the outcome of the U.S. Federal Open Market Committee (FOMC) meeting. The global cryptocurrency market has largely turned green, reflecting growing optimism over anticipated interest rate cuts by the Federal Reserve.
Bitcoin Around at $61k Holds Strong
The cumulative cryptocurrency market cap rose by over 2% in the past 24 hours, now standing at $2.08 trillion. Meanwhile, trading volumes surged by 26%, reaching $77.28 billion. Despite this bullish momentum, the market’s Fear and Greed Index remains in the “Fear” zone, highlighting lingering investor caution.
Bitcoin’s price surged past $61,000 late Tuesday before retreating to the $60K range. BTC has gained approximately 7% in the last seven days, although it remains 10% lower than its value two months ago. At the time of writing, Bitcoin is trading at an average price of $60,479, with its 24-hour trading volume spiking by 39% to $39 billion.
A bullish sentiment has been fueled by inflows into Bitcoin exchange-traded funds (ETFs). Data from Sosovalue shows a net inflow of $187 million into BTC ETFs on September 17. This marks the fourth consecutive day of positive inflows, reinforcing optimism around Bitcoin’s near-term performance.
Speculation Over Fed Rate Cuts
The recent rally in the crypto market is driven by expectations that the Federal Reserve will announce its first rate cut since the COVID-19 pandemic. Most analysts predict a modest 0.25% reduction from the current 5.3%, though some market participants are speculating on a more substantial 0.5% cut.
Traders on Polymarket are split, assigning a 53% probability to a 50-basis-point cut and 46% to a 25-basis-point reduction. A larger-than-expected rate cut could have significant ripple effects across the cryptocurrency market, particularly for Bitcoin and other major digital assets.
In the broader economy, U.S. unemployment has climbed to 4.2%, rising in four of the last five months. Historically, such trends often precede economic slowdowns. The Fed’s decision, expected soon, could provide relief to markets, especially if it signals a softer stance on borrowing costs.
This version adds clarity, cohesion, and a smoother flow, while still providing all the key information.
Broader Economic Concerns Loom Bitcoin around $61k
While the prospect of a Fed rate cut has buoyed the market, broader economic concerns remain. U.S. unemployment has been on the rise, reaching 4.2% after increasing in four of the last five months. Historically, rising unemployment tends to be a precursor to economic slowdowns, and some economists are warning that the U.S. economy may be headed toward a recession.
Despite these challenges, the Federal Reserve’s upcoming decision could provide a much-needed boost to both traditional and crypto markets. A more dovish monetary policy, with reduced borrowing costs, could ease some of the pressure on businesses and consumers, helping to stabilize the economy.
The crypto market will be closely watching the Fed’s decision, as any signals of further rate cuts or a more accommodative monetary stance could fuel further gains for Bitcoin and other digital assets.