Bitcoin price today is climbing,
Price Trading volume in 24h Last 7d price movement , as all eyes are on the Federal Reserve and the FOMC Bitcoin News. If the central bank slashes rates by 50 basis points, it could explode Bitcoin USD.
The market braces for tomorrow’s United States Federal Reserve (Fed) and the Federal Open Market Committee (FOMC) when they declare the country’s new monetary policy direction.
It promises to be a market-moving event. The consensus is that the central bank will slash interest rates for the first time since early 2020.
This decision was highly expected. The economy has managed to shake off the impact of the stubbornly high inflation.
Since the COVID-19 pandemic and the resulting intervention to mitigate the impact of the disruptions, the central bank began slashing rates throughout 2019, forcing it to as low as 0.25% from early 2020.
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The combination of low interest rates and “helicopter” money forced inflation higher. As a result, the Federal Reserve had to begin hiking rates as inflation exploded.
At one point in 2021, inflation and interest rates stood at multi-year highs.
The Fed Is Back To Rate Cutting
The good news is that inflation has since dropped to near the benchmark of 2%, labor market conditions have stabilized, and the economy is bouncing back.
Amid this, rates remain high, but this will change in the next 36 hours.
According to reports, the Fed will likely slash rates by 25 basis points.
Others also speculate that the rate cut will be much larger, at 50 basis points.
Regardless, the September 18 rate cut could be one of the two scheduled for this year.
Three rates had been projected for this year, but the central bank dampened optimism, saying it planned to slash only two times.
Whether or not the Fed will drop interest rates by 25 or 50 basis points, the comments by Jerome Powell would move the crypto markets.
If the bank is dovish and plans to make its regime more accommodative, risky assets, mainly Bitcoin, could explode.
Bitcoin Price Under Pressure: Could Institutional Money Fuel Next ATH?
Currently, Bitcoin is struggling for momentum.
Prices have cooled off after the race above $61,000 on September 13, trading at spot rates.
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Buyers have a chance as long as prices remain above $56,500.
Any surge above $61,000, confirming the end of last week’s gains, could trigger more demand, a lift-off that may see BTC soar to $66,000.
Now, looking at the relationship between spot price and spot Bitcoin ETF inflows, rising prices could see more institutions loosen their purse strings and seek exposure to BTC.
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Bitcoin News: Spot Bitcoin ETFs Posting Inflows
In Q1 2024, the inflow to spot Bitcoin ETFs, despite the outflows from GBTC, lifted the coin to record highs.
According to Soso Value, the big Bitcoin news is this inflow trend is beginning to shift.
As of September 16, all spot Bitcoin ETFs in the United States had net inflows of $12.90 million.
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There were outflows from GBTC, at around $20.75 million, but IBIT and FTBC posted inflows, outweighing the outflow.
If the Fed cuts the rate more than expected, say by 50 basis points, Bitcoin prices will rally, even breaking $70,000.
The surge would boost inflows to spot Bitcoin ETFs, pushing the total net assets managed by all issuers in the United States above $52 billion.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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