Manila, Philippines — The crypto rollercoaster continues as Bitcoin (BTC) slips below the critical $65,000 mark. Here’s what’s driving the recent price movement:
1. Fed’s Interest Rate Decision
- The United States Federal Reserve (Fed) opted to keep interest rates unchanged, surprising few.
- Fed Chair Jerome Powell emphasized the economy’s robust expansion, positive GDP growth, and plans to reduce inflation.
- Inflation, once at 7%, has eased to 2.5%, and the Fed remains committed to its 2% target.
2. Oversold Signal and Middle East Tensions
- Pseudonymous crypto commentator Seth points out that Bitcoin’s relative strength index (RSI) is now “oversold,” potentially signaling a buying opportunity.
- Meanwhile, tensions in the Middle East escalate. Reports of Hamas leader Ismail Haniyeh’s assassination in Tehran add to the uncertainty.
3. September Rate Cut Speculation
- While Fed Chair Powell hasn’t confirmed a September rate cut, optimism prevails.
- Moody’s Analytics chief economist Mark Zandi expects inflation data to align with the Fed’s forecast, making a rate cut likely.
- Global investors watch closely as stocks rise and bond yields fall.
4. Powell’s Dovish Tone
- MN Trading founder Michael van de Poppe sees Powell’s “dovish tone on the future” as a positive sign for Bitcoin and altcoins.
