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The global crypto market is experiencing a notable rise, with a surge in total market cap rising by about 4.8% over the last 24 hours to reach $2.26 trillion. Bitcoin, the leading cryptocurrency, has also seen a notable increase, with its price climbing to $64,961.
This recent surge follows statements from FED chair Jerome Powell, as well as changes in the U.S. political landscape.
Federal Reserve Hints at Rate Cuts
Recent remarks from Jerome Powell, Chairman of the Federal Reserve, have stirred excitement in the markets. Powell hinted that the Fed might consider lowering interest rates in response to signs of an economic slowdown and falling inflation.
This has led to speculation that the Fed could cut rates in September, with a 32% chance of a 0.50% cut and a 67% chance of a 0.25% cut. Lower interest rates typically encourage investment in riskier assets like cryptocurrencies, as they reduce the returns on more traditional investments.
Shifting Political Stance
Political developments are also influencing the crypto market. Robert F. Kennedy Jr., a well-known Bitcoin supporter, recently dropped out of the presidential race and endorsed Donald Trump. This endorsement has shifted the political landscape, with Trump’s chances of winning the election now at 50% and Kamala Harris’s odds rising to 49%.
Such changes can create uncertainty in traditional markets, prompting investors to look for alternative assets like cryptocurrencies.
Bitcoin Supply on Exchanges Declines
Another factor driving Bitcoin’s price is the declining supply of the cryptocurrency on exchanges. According to data from CryptoQuant, Bitcoin reserves on centralized exchanges have fallen to their lowest level ever.
Over the past month, the amount of Bitcoin available for trading has dropped from over 2.75 million to about 2.67 million a 3% decrease. This reduction suggests that fewer Bitcoins are available for immediate trading, which could lead to a supply shortage and higher prices if demand remains strong.
Optimism Among Bitcoin Traders
Many traders are optimistic about Bitcoin’s future, betting on its price reaching $100,000 by the end of the year. Meanwhile, recent data from Deribit, shows a significant number of options targeting this price level, reflecting strong bullish sentiment.
Additionally, $3.88 billion worth of Bitcoin options expire on August 30, with a “max pain” point of $61,000. This indicates that traders expect Bitcoin to recover at least this level as these contracts settle.
What’s Next for Bitcoin?
After a period of ups and downs, Bitcoin is currently trading at $64,157, reflecting a 5.3% rise and maintaining a position above the important 200-day Moving Average. For Bitcoin to continue its upward momentum and break past the $65,000 mark is crucial.
Meanwhile, the bull must hold its current bullish stance and stay above the support level of $62,500.