Bitcoin Bulls Push Price Above $60,000 As These Key Macro Tailwinds Come In – BTC Breakout Back to $70,000 Incoming?
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
Bitcoin (BTC) pushed back to the north of the $60,000 level on Wednesday, with traders eyeing a major BTC breakout back towards $70,000 as macro tailwinds come in.
The minutes of last month’s Fed meeting were dovish, with most policymakers supporting interest rate cuts starting next month.
SUMMARY OF FED MEETING MINUTES (8/21/24):
1. Majority of Fed members believe it is appropriate to lower rates at next meeting if data remains constructive
2. Recent data has enhanced confidence over inflation
3. Several participants considered a 25 bps rate cut in July
4.…
That all but confirmed what everyone already new – rate cuts are coming.
Indeed, fed funds futures markets currently imply a more than 70% likelihood that the Fed will have lowered interest by at least 100bps by this time next year, per CME data.
While the dovish Fed meeting minutes weren’t a surprise to the market, they are still acting as a tailwind.
That’s because an easing of global liquidity conditions (i.e. lower interest rates resulting in more money being created) is generally associated with a rising Bitcoin price.
As Thursday’s US PMI data and Friday’s speech from Fed Chair Jerome Powell near, the risks of a BTC breakout are growing.
Assuming economic data doesn’t show the US economy tipping into a recession, but the Fed remains on course to lower interest rates, marco is set to remain a tailwind for Bitcoin.
Politics may also be acting as a tailwind on Wednesday.
Per Polymarket, pro-crypto Republican Presidential nominee Donald Trump is once again the favorite to win the
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