Investors celebrated a widespread market upturn , with cryptocurrencies, stocks, and precious metals all experiencing significant gains, driven by anticipated easing of monetary policies as central banks lower interest rates and governments introduce stimulus measures.
Analysts at Secure Digital Markets pointed out that the Federal Reserve’s recent interest rate cut, designed to tackle inflation, has sparked substantial movements in the markets, particularly impacting Bitcoin (BTC) and equities. However, they also highlighted concerns about the broader economy’s stability, noting that this uncertainty could complicate the Fed‘s efforts to balance inflation control with economic growth. This instability is contributing to increased market volatility, particularly for Bitcoin, which is particularly sensitive to changes in monetary policy.
The analysts noted a positive sign in the labor market, as weekly jobless claims fell below expectations, indicating resilience. Additionally, durable goods orders remained unchanged in August, defying forecasts for a decline, while the second quarter GDP remained steady at 3%. These factors collectively bolster confidence in the economy’s underlying strength, despite the aggressive rate cuts by the Fed.
Market participants were keenly awaiting statements from central bank officials. Fed Chair Jerome Powell’s recent speech at the 2024 U.S. Treasury Market Conference yielded no new insights on monetary policy, leading to a minor dip in market performance immediately after his remarks. However, markets ultimately rallied, closing higher.
At the end of trading, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all finished in positive territory, up 0.40%, 0.62%, and 0.60%, respectively.
TradingView data revealed that Bitcoin bulls successfully pushed the price above $65,000 amid renewed risk-on sentiment, peaking at $65,887 during the afternoon before pulling back slightly below this resistance level.
“Currently, 84% of Bitcoin holders are in profit, which reinforces its position above $64K,” analysts from Secure Digital Markets noted. They suggested that momentum indicates a potential breakout above the $65K threshold could occur soon, especially considering that historically, the fourth quarter has been a strong period for Bitcoin, supported by seasonal trends.
You Might Be Interested In
- Gold Reaches Record High of $2,685 Amid Positive Economic Signals and Geopolitical Tensions
- Gold Prices Hold Steady Near Record Highs Ahead of Powell’s Address
- Gold Reaches New All-Time High as Global Tensions and Rate Cuts Fuel Demand
