Bitcoin (BTC) Price Resurges After FOMC Minutes Hint at Interest Rate Cuts

The world’s largest cryptocurrency, Bitcoin (BTC), along with other altcoins, has seen a resurgence soon after the Federal Open Market Committee (FOMC) released its minutes of meeting on Wednesday, August 21.

After a prolonged period of muted activity, the crypto market finally seems to be waking up from its slumber. Following the Federal Open Market Committee’s (FOMC) meeting minutes release on Wednesday, a collective sigh of relief swept across the market as anticipation builds for potential interest rate cuts.

Bitcoin (BTC) price rose 2.53% at the time of writing and was trading at $61,004. Meanwhile, BTC market cap also surged past $1.2 trillion.

The broader crypto market also experienced a surge, with a 2.35% increase in total market cap.

The minutes of the FOMC meeting revealed a strong consensus among participants that the Federal Reserve should begin considering cutting interest rates. Several participants expressed a preference for a 25 basis point (bps) reduction in September.

The discussion centered around the progress made in reducing inflation, which is now approaching the Fed’s target of 2%. Participants also highlighted the rising unemployment rate, which provides further rationale for initiating rate cuts and moving toward quantitative easing.

However, participants also cautioned against maintaining higher interest rates for an extended period, as this could lead to a further weakening of the economy.

The consensus among market traders now assigns a 100% probability to a U.S. central bank interest rate cut next month. The only remaining uncertainty lies in whether the cut will be 25 bps or 50 bps.

Bitcoin and Crypto Market Poised for Recovery

The broader crypto market surged by 2.35% as of press time following the release of the FOMC Minutes. Bitcoin’s price also rose 2.53%, and it was trading at $61,004, with its market cap soaring above $1.2 trillion.

Over the past few days, the Bitcoin price has been hovering around the $60,000 level, as bulls and bears engaged in a tense battle for market dominance.

On-chain data showed that Bitcoin volatility had surged to levels last seen during BTC’s all-time high in March. As volatility rises, BTC traders expressed optimism that this could serve as a catalyst for Bitcoin to finally break out of its prolonged consolidation phase.

However, for this to occur, the BTC price must sustainably breach and hold above the $61,000 level. According to some market analysts, Bitcoin could be preparing for a parabolic rally in Q4, as reported by Crypto News Flash.

#Bitcoin After a big slump in volatility levels, it’s now ramping back up and getting close to levels we saw earlier this year at the all time highs.

It’s what’s eventually needed to put an end to this massive consolidation in one way or another pic.twitter.com/CHoZXHk5K4

— Daan Crypto Trades (@DaanCrypto) August 21, 2024

Altcoins Experience Stronger Recovery

Beyond Bitcoin, the recovery in the altcoins market was even more pronounced. Binance’s BNB coin experienced a 4.26% increase, currently trading at $580, following the crypto exchange’s announcement of a large-scale hiring drive this year.

Binance aims to hire 700 employees to bolster its global compliance efforts.

Cardano’s native crypto ADA also surged by 6% on Wednesday, as the Cardano blockchain prepares for the Chang hardfork, scheduled for August 27, according to a CNF report.

Meanwhile, Tron’s TRX also came under the spotlight amid the memecoin frenzy on the SunPump platform.

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