Bitcoin trimmed its gains after an intraday rally fueled by anticipation of a Federal Reserve interest rate cut, which had heightened demand for speculative assets. As of 8:50 a.m. in Singapore on Wednesday, Bitcoin was trading near $60,000, having surged as much as 6.4% to surpass $61,000 during U.S. trading hours on Tuesday—the most significant intraday gain since August 8.
Market expectations now suggest a 55% chance that the Fed will announce a 50-basis-point rate reduction later today, with traders having already factored in a quarter-point cut.
Shiliang Tang, president of Arbelos Markets, attributed Bitcoin’s price movement to its increasing correlation with traditional financial markets. He also pointed to MicroStrategy Inc.’s recent announcement of a convertible note sale to acquire additional Bitcoin as a contributing factor to the bullish sentiment.
Since reaching an all-time high of nearly $74,000 in March, Bitcoin has been trading within a relatively narrow range. Stephane Ouellette, co-founder and CEO of FRNT Financial, noted that the market remains relatively thin, making it susceptible to significant price movements with relatively small changes in market conditions.
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