FOMC

Galaxy

Bitcoin

Factor

Impact

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin [BTC] decoupled from US equities after the FOMC meeting, sliding below $65k.</li> 
 <li>July Jobs report on Friday could impact BTC price direction.</li> 
</ul>  
<p>Bitcoin [BTC] showed a surprising deviation from US equities after the Federal Open Market Committee (FOMC) meeting on 1st August, dropping below $65k while stocks reached record highs.</p> 
<p>The FOMC maintained interest rates as anticipated, but Jerome Powell, the chair, hinted at a probable rate cut in September. Despite this, Bitcoin did not follow the US equities rally.</p> 
<h2 id="market-risk-factor">Market Risk Factor</h2> 
<p>Mike Novogratz of Galaxy Digital suggested that the US government might be a market risk factor. He proposed that the US might sell Bitcoin for political reasons, following Trump’s announcement of creating a strategic reserve.</p> 
<p>QCP Capital also expressed similar market caution related to the U.S. government’s movement of $2 billion of BTC last week. As a result, they projected that BTC might remain constrained in the range after failing to clear the $70k range-high.</p> 
<h2 id="impact-of-july-jobs-report">Impact of July Jobs Report</h2> 
<p>The upcoming market mover could be the US July 2024 Jobs report, due on 2nd August. Past jobs reports have shown that fewer added job scenarios have led to a rally for BTC. However, improved US labor markets reflected in June and July jobs reports dragged BTC lower.</p> 
<p>Quinn Thompson of the crypto hedge fund Lekker Capital shared a similar outlook. He maintained a positive outlook for H2 2024, despite acknowledging the potential impact of Friday’s jobs report on the market.</p> 
<p>At the time of writing, BTC was trading below $65k and could only rebound from the short-term support near $65k if the Jobs’ report favors bulls. Thus, macro factors and US politics continue to influence BTC price, making it essential to monitor these fronts for risk management.</p>

Why Didn’t Bitcoin Recover After FOMC’s Dovish Stance? Explore Here!

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CoinEagle.com

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