Federal Reserve's 0.25 percentage point reduction triggers Bitcoin revaluation; potential October surge in value?
In the dynamic world of cryptocurrencies, both Bitcoin and Cardano are making headlines with their recent developments.
Bitcoin, the world's largest digital currency, is primed for a potential all-time high (ATH) due to a series of favourable factors. Dovish signals from the Federal Reserve, seasonal tailwinds, and aligned macroeconomic flows have kept Bitcoin in a favourable position. The Fed's long-term positioning remains dovish, as indicated by the Fed's dot plot, which suggests a 25 basis points cut in 2025. The latest forecasts also indicate additional rate cuts totaling 50 basis points by the end of 2025.
However, the Fed's recent cut has not led to significant market movements in Bitcoin. Market participants are still assessing Q4 due to mixed signals from the Fed Chair Powell regarding future rate cuts. Despite this, most Fed officials are leaning toward two more cuts, as suggested by the dot plot.
Meanwhile, Bitcoin's price action is being influenced by the overall macroeconomic flows. The potential long squeeze in Bitcoin is a notable development, but no parabolic moves are expected. The increase is range-bound, indicating cautious trading. Matt Mena, Crypto Research Strategist at 21Shares, has stated that market participants are being cautious.
On the other hand, sellers currently have the upper hand in Cardano, targeting a price of $1.20. The Federal Reserve's updated dot plot signals two more 25 basis points cuts by year-end, which could potentially impact the price of Cardano.
The SEC's approval of generic listing standards for crypto ETFs, often referred to as 'the gates being open,' could be a game-changer for the cryptocurrency market. This approval could lead to increased institutional investment and further mainstream adoption of cryptocurrencies.
In conclusion, while Bitcoin and Cardano are currently experiencing different market trends, both are influenced by the same set of global economic factors. As always, it is essential for investors to conduct thorough research and make informed decisions based on their risk tolerance and investment goals.
