Bitcoin (BTC) Consolidating Near $58,500; Fed Rate Cut Hopes and UK Crypto Bill in Focus
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Bitcoin is consolidating below a critical resistance level at $58,500, where a potential triple-top pattern is emerging. As inflation cools and expectations of a Federal Reserve rate cut grow, market sentiment is shifting toward optimism.
Alongside positive developments like Marathon’s CEO calling Bitcoin the “perfect asset” and the UK’s new bill clarifying cryptocurrency laws, investors are increasingly viewing Bitcoin as a long-term store of value, supporting its current price levels.
The latest U.S. inflation data suggests the Federal Reserve may reduce interest rates, benefiting cryptocurrencies like Bitcoin and Ethereum.
August’s annual inflation increase slowed to 2.5%, the lowest since March 2021, down from 2.9% in July. This trend aligns with the Fed’s 2% target, increasing the likelihood of a dovish policy shift.
Today's CPI data show inflation growth continued to ease in August. That could be good news for crypto, says @CScottGarliss.
Opinion. https://t.co/mB9fTh1vdj
A potential rate cut of up to 50 basis points is supported by falling inflation, declining gas prices, and weaker job reports. Investors expect this will boost riskier assets, including cryptocurrencies.
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This has already led to a slight rise in Bitcoin prices, as a weaker U.S. dollar improves market sentiment, increasing long-term crypto prospects.
Fred Thiel, CEO of Marathon Digital Holdings, believes Bitcoin (BTC) is a “perfect asset class,” comparing it to the US dollar and art like Banksy’s work. With a capped supply of 21 million units,
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