Jerome Powell

Chair

Bitcoin

<ul> 
 <li aria-level="1">Bitcoin’s price remains low despite Fed’s dovish stance; no rate change influences BTC.</li> 
 <li aria-level="1">Bitcoin drops to $63,400, marking its lowest level since July 19 amid market uncertainty.</li> 
</ul> 
Despite the Federal Reserve’s dovish stance, Bitcoin’s price failed to rally, tapping a two-week low as market liquidity remained a primary concern for traders. 
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</div> 
The recent Federal Open Market Committee (FOMC) meeting concluded with the decision to maintain interest rates, with Fed Chair Jerome Powell suggesting a potential rate cut in September dependent on favorable inflation data. 
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 <iframe loading="lazy" title="Fed holds rates steady, hints a rate cut could be coming" width="696" height="392" src="https://www.youtube.com/embed/JvqY6A9cEo0?feature=oembed&amp;enablejsapi=1" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div> 
<blockquote>
 “The second-quarter’s inflation readings have added to our confidence, and more good data would further strengthen that confidence. We will continue to make our decisions meeting by meeting.”
</blockquote> 
Bitcoin, typically sensitive to <a href="https://www.ethnews.com/interest-rate-turnaround-fed-might-cut-rates-in-september/">Fed’s monetary policies</a>, displayed unusual indifference following the meeting. The price of Bitcoin fell to $63,400, its lowest point since July 19, reflecting a persistent weakness despite the crypto market’s anticipation of a rate cut.&nbsp; 
<figure id="attachment_85068" aria-describedby="caption-attachment-85068" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-85068" src="https://www.ethnews.com/wp-content/uploads/2024/08/2fc8a1b6-83b0-431d-8839-821c002aa954-e1722534654343.webp" alt="" width="1617" height="821">
 <figcaption id="caption-attachment-85068" class="wp-caption-text">
 Source: Tradingview
 </figcaption>
</figure> 
This disconnect highlights the current complexities in cryptocurrency market, where even a dovish Fed does not necessarily translate to bullish crypto movements. 
<figure id="attachment_85072" aria-describedby="caption-attachment-85072" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-85072" src="https://www.ethnews.com/wp-content/uploads/2024/08/fd08a7cb-ccff-4616-b872-0903182baee3.webp" alt="" width="2000" height="1000">
 <figcaption id="caption-attachment-85072" class="wp-caption-text">
 Source: CME Group
 </figcaption>
</figure> 
Crypto analysts on X expressed skepticism about the immediate future of Bitcoin prices. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> update: 
 Are we going to see the weekly psychological pattern playing out again? 
 We also see a lot of delta short liquidations signaling a potential short squeze before the weekend. 
 • Become an active trader here to receive access to the indicator: <a href="https://t.co/vp3GHIeNxB">https://t.co/vp3GHIeNxB</a> <a href="https://t.co/7Ft0Nfhb7C">pic.twitter.com/7Ft0Nfhb7C</a> 
 — CrypNuevo <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f528.png" alt="🔨" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@CrypNuevo) <a href="https://twitter.com/CrypNuevo/status/1818979015429869915?ref_src=twsrc%5Etfw">August 1, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 One trader suggested that Bitcoin might drop further, estimating potential lows between $61,000 and $59,000, depending on market confidence levels. 
<figure id="attachment_85076" aria-describedby="caption-attachment-85076" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-85076" src="https://www.ethnews.com/wp-content/uploads/2024/08/c55566ce-059d-4f3a-9fb8-9e8b6323253c.png" alt="" width="1419" height="779">
 <figcaption id="caption-attachment-85076" class="wp-caption-text">
 Source: CoinGlass
 </figcaption>
</figure> 
 This cautious outlook underlines the ongoing uncertainty and speculative nature prevalent in the crypto trading community. 
In contrast, equities responded positively to the Fed’s announcements, underscoring a divergence in how traditional and digital asset markets react to economic signals. 
<figure id="attachment_85080" aria-describedby="caption-attachment-85080" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="wp-image-85080 size-full" src="https://www.ethnews.com/wp-content/uploads/2024/08/iquidity-data.webp" alt="" width="1866" height="931">
 <figcaption id="caption-attachment-85080" class="wp-caption-text">
 Source: CrypNuevo/X
 </figcaption>
</figure> 
 This separation suggests that factors specific to the cryptocurrency market—such as liquidity concerns and regulatory developments—might be exerting a stronger influence on crypto prices than broad economic policies. 
Moreover, the broader crypto market remains tense, with traders closely monitoring daily outflows from newly launched US spot <a href="https://www.ethnews.com/mv-globals-managing-partner-foresees-massive-inflows-into-ether-etfs-upcoming-ether-etfs-could-attract-billions/">Ether ETFs</a> and potential sell pressures from ongoing financial events like the <a href="https://www.ethnews.com/bitcoin-plummets-below-60000-amid-market-wide-sell-off-and-mounting-pressure-from-mt-gox-repayments/">Mt. Gox</a> repayments and US government actions. 
<blockquote>
 “The establishment of a U.S. or sovereign ‘put’ on BTC prices may have significant implications, potentially making accumulation on dips a strategic investment approach.”
</blockquote> 
The complex interplay of these factors continues to shape market sentiment, keeping traders on edge. 
The possibility of a U.S. government-supported price floor for Bitcoin may redefine investment strategies, potentially encouraging buying during price dips as a strategic move. 
The post <a href="https://www.ethnews.com/crypto-in-crisis-bitcoin-ignores-fed-cuts-hits-startling-low/">Crypto in Crisis? Bitcoin Ignores Fed Cuts, Hits Startling Low!</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Crypto in Crisis? Bitcoin Ignores Fed Cuts, Hits Startling Low!

ETHNews

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