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The Bitcoin price surged 10% to trade for $67,314 as of 02:10 a.m. EST time on trading volume that slumped 17%.
It comes following positive comments by Federal Reserve chair Jerome Powell that indicated Fed policymakers see three rate cuts this year. Earlier, the Federal Open Market Committee (FOMC) meeting left rates unchanged at 5.24% to 5.50% for the fifth consecutive time.
Market cheering positive outcome of FOMC meeting! In the meeting, 19 policymakers of the US see three quarter-point rate cuts this year, while others see two or less than that.
So it is very much evident that rate cuts will start in 2024. And this hint is enough for market to… pic.twitter.com/9km3zJ92ea
— sahil bhadviya (@sahilbhadviya) March 21, 2024
It was enough to buoy cryptocurrency markets amid expectations of better liquidity going forward.
#FOMC The latest Fed dot plot indicates a thin median for 3-rate cuts are expected in 2024. pic.twitter.com/IcaHnm3Fxu
— Wall St Engine (@wallstengine) March 20, 2024
For the layperson, there are three reasons why the possibility of a rate cut would be bullish for Bitcoin and crypto in general.
Why Interest Rate Cuts Are Bullish For The Bitcoin Price
First, traditional investments like bonds and savings accounts will have lower returns and become less appealing to investors, prompting them to seek out alternatives.
Secondly, falling rates may cause renewed concerns about inflation, prompting investors to search for hedges. With the fixed supply of BTC, as well as its decentralized nature, some investors see it as a hedge against inflation, which makes it more attractive in times of economic uncertainty.
Lastly, the expectation of lower interest rates can influence investor sentiment, leading to speculative behavior within the market. This could increase the demand for BTC as investors seek to capitalize on potential price increases.
Bitcoin Price Facing Spot BTC ETF Headwinds
Despite the surge in the Bitcoin price, headwinds come as ETF inflows continue to reduce. Data according to Coinglass shows that the inflows have started to decline significantly.
After a high of $1.04 billion in inflows on March 13, net outflows reached $154 million on Mar. 18 before hitting $326 million on March 19.
BTCETF flows
Bitcoin Price Outlook
Should inflows increase for the BTC spot ETF investment product, the Bitcoin price could rally north to record a new all-time high above $73,777. Already, the interest rate narrative has played its part in reinvigorating the market, setting the tone for a continuation of the recovery rally.
From a technical standpoint, the odds still favor the bulls, seeing as the position of the Relative Strength Index (RSI) supports the bullish thesis as it remains well above 50. Also, the DXY indicator is dropping, marking another sign for BTC holders. In hindsight, every time this overlay comparison drops (bearish), the result is almost always bullish for Bitcoin.
With this, it is likely that the Fed may have saved Bitcoin price from a further downside momentum.
TradingView: BTC/USDT 3-day chart
On the other hand, since the bull market started in 2023, Bitcoin price has recorded multiple pullbacks, with all of them averaging to a 20% downswing. If history were to repeat, or rhyme at best, Bitcoin price could still drop to test the weekly imbalance of the Fair Value Gap (FVG), which extends from $52,985 to $59,005. Late bulls and sidelined investors could have opportunity to buy the correction around this order block.
Meanwhile, as the Bitcoin price soars, experts say BTCMTX is perfectly placed to 10X with the Bitcoin halving coming in April.
Promising Alternative To Bitcoin
Bitcoin Minetrix is a cloud-mining project that makes Bitcoin ownership achievable even for ordinary folk. It allows users to stake its native token, BTCMTX, and receive credits that can then be used to mine Bitcoin itself.
Delving into the possibilities of #BitcoinMinetrix!
✅ Seamless start for newcomers.
💵 Cost-effective without upfront hardware costs.
🌈 Say goodbye to concerns about location, noise, and temperature!
🔁 Effortless enhancements with little hassle. pic.twitter.com/uKo48Ug9h2
— Bitcoinminetrix (@bitcoinminetrix) March 20, 2024
It’s currently in the presale stage, allowing interested investors to buy BTCMTX for just $0.0141 as stage 32 ends.
So far, presale sales have reached $12.472 million out of a target objective of $13.302 million.
@MarathonDH ramps up infrastructure as #Bitcoin's code update looms, aiming to stay competitive amidst revenue cuts. 🔧
How do you think miners will navigate the changing landscape post-halving? 🤔#BitcoinMinetrix has also reached a new milestone and surpassed $12,400,000! pic.twitter.com/vDDa2zgGXa
— Bitcoinminetrix (@bitcoinminetrix) March 18, 2024
Visit the website to learn more about the project, and buy the BTCMTX token here.
Also Read:
- How To Buy Bitcoin Minetrix On Presale – Alessandro De Crypto Video Review
- Bitcoin Minetrix Presale Has Just Hours Left: Last Chance to Buy Before Price Rise
- Official Oboypapi Shares a New Way to Earn Bitcoin with the Bitcoin Minetrix Stake-to-Mine Approach
- Filipino YouTuber ALROCK Reviews the New Stake-to-Mine Crypto – Bitcoin Minetrix
- Best Crypto to Watch in 2024: Top 5 Cryptocurrencies with High Potential
Most Searched Crypto Launch - Pepe Unchained
- Layer 2 Meme Coin Ecosystem
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- SolidProof & Coinsult Audited
- Staking Rewards - pepeunchained.com
- $40+ Million Raised at ICO - Ends December
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