Bitcoin Blasts Past $60K: Fed’s ‘Big Cut’ Hopes Send Crypto Soaring
Cryptocurrency Market Sees Significant Gains Amid Fed Rate Cut Expectations
The cryptocurrency market experienced a notable surge on the 13th in New York time, with Bitcoin testing the $60,000 mark. This upward trend is largely attributed to the growing expectations of a 50 basis point interest rate cut by the Federal Reserve next week.
Market Analysis
The market initially showed a lethargic sideways movement within the recent range early in the day. However, from the latter half of the morning session, the cryptocurrency market began to rise. Bitcoin quickly expanded its gains, easily breaking through $59,000 and approaching $60,000. Ethereum also surpassed $2,400.
The New York Stock Exchange, which has recently shown a movement in sync with the cryptocurrency market, also maintained an upward trend and supported the rebound in digital asset prices. The exact cause of the rise in the cryptocurrency market on this day has not been revealed, but it is analyzed that the revival of expectations for the Fed’s big cut played a part as a catalyst.
Fed Rate Cut Expectations
According to the CME FedWatch, the probability of the Fed cutting interest rates by 50 basis points next week jumped 23 percentage points to 51.0% this afternoon, compared to the previous day. On the other hand, the probability of a 25 basis point cut fell 23 percentage points to 49.0%. Reflecting the bet on a wider rate cut, the value of the US dollar and Treasury yields fell. Gold prices hit a record high.
Cryptocurrency Market Performance
As of 3:45 p.m. New York time on the 13th, the cryptocurrency market capitalization on CoinMarketCap was $2.1 trillion, up 2.59% from 24 hours ago. It increased by $60 billion compared to the beginning of the New York time zone that day. The 24-hour trading volume of the cryptocurrency market was $62.7 billion, up 0.80%. Bitcoin dominance was 56.4%, and Ethereum dominance was 13.9%.
Other altcoins that made it to the top 10 by market cap are all up over the past 24 hours. BNB is up 2.50%, Solana is up 1.96%, XRP is up 1.02%, Dogecoin is up 4.26%, TON is up 3.37%, and Cardano is up 1.52%. Cardano has overtaken Tron to reclaim the top 10 spot.
Cryptocurrency Futures and ETFs
Bitcoin futures for September delivery on the Chicago Mercantile Exchange (CME) advanced 2.63% to $61,200.00, October futures advanced 2.66% to $65,585.00, and November futures advanced 2.00% to $66,660.00 Ethereum for September delivery rose 2.66% to $2,432.00. October futures rose 2.62% to $2,446.00. November futures rose 2.19% to $2,453.00.
According to Farside Investors, Bitcoin ETFs recorded a net inflow of $39 million on Thursday, turning positive again in one day. Grayscale Bitcoin Trust (GBTC) saw an outflow of $6.5 million, but several funds, including Ark21Shares, $18.3 million, and Fidelity, $11.5 million, recorded net inflows.
Ethereum ETFs saw net outflows of $20.1 million, with Grayscale Ethereum Trust (ETHE) seeing $20.1 million inflows and other funds seeing no inflows or outflows.
CoinMarketCap (3:45 PM New York Time on the 13th)