Bitcoin price today: edges higher to $60k, more economic cues awaited
Bitcoin’s price moved marginally higher on Thursday, steadying after steep declines over the past two sessions as traders awaited a slew of upcoming economic data to determine crypto’s next leg of movement.
The world’s largest cryptocurrency fell sharply on Tuesday and Wednesday after the movement of nearly $2 billion tokens between the wallets of a major crypto exchange rattled traders with the prospect of another major sale event.
Signs of dwindling capital flows into crypto also saw Bitcoin remain within a trading range seen for most of this year, even as the price logged wild swings in recent sessions.
Bitcoin added 0.6% to $60,478.0 by 09:09 ET (13:03 GMT), steadying after falling as low as $58,000 earlier in the week.
A drop in the shares of market darling NVIDIA Corporation (NASDAQ:NVDA ) also undermined risk appetite, which left crypto prices struggling to make headway. Inflation, GDP data awaited for more rate cues
Crypto markets were still kept off recent lows by persistent optimism over lower U.S. interest rates. Lower rates present a more facilitative environment for speculation- which is a key driver of crypto price action.
U.S. economic readings due this week are likely to factor into the outlook for interest rates. A revised reading on second quarter gross domestic product data is due later on Thursday, coming after a reading released last month showed resilience in the world’s biggest economy.
PCE price index data- the Federal Reserve’s preferred inflation gauge- is due on Friday, and will also be closely watched.
Markets are split between a 25 or 50 basis point cut in September, with any weaker economic data likely to drive expectations for a greater reduction.
But just how much crypto will benefit from lower rates remains to be seen, after a recent report from blockchain research firm Glass Node showed speculative interest in the sector, especially amid retail investors, had largely run dry.
Other capital flows data showed waning enthusiasm among institutional investors towards crypto, as optimism over the launch of spot Bitcoin exchange-traded funds earlier this year petered out. Crypto price today: altcoins performance mixed, range-bound
Among broader crypto prices, major altcoins clocked some gains, but struggled to break out of losses logged earlier this week.
World no.2 crypto Ether rose 1.5% to $2,570.41, while XRP lost 1.3% and ADA climbed 1.3%.
SOL lagged with a 1.4% decline, while MATIC slipped 1.2%, extending steep losses seen earlier this week.
Among meme tokens, DOGE edged 0.4% higher. Upcoming rate cuts set to drive crypto resurgence, analysts say
Cryptocurrencies, led by Bitcoin, could be poised for a strong recovery as central banks, especially the U.S. Federal Reserve, prepare to ease monetary policy, market analysts said.
The much-anticipated rate cuts are expected to inject fresh liquidity into financial markets, potentially boosting risk assets like equities and cryptocurrencies, despite ongoing market uncertainties.
However, analysts caution traders to remain cautious due to the upcoming U.S. presidential election in November and uncertainties in fiscal policy. While the overall sentiment leans towards cautious optimism, the shift towards monetary easing by central banks is seen as a positive for the crypto market.
Digital asset trading firm QCP Capital noted on Tuesday that any downturn in equities and crypto is likely to be "short-lived" as the Fed prepares to initiate a rate-cutting cycle. Last week, Federal Reserve Chairman Jerome Powell indicated that interest rate cuts could begin as early as next month, with the market expecting three rate cuts this year.
"Increased liquidity will eventually push risk assets higher,” the Singapore-based firm said in a note. “We are finally on the cusp of a rate-cutting cycle."
This view is shared by analysts at blockchain analytics platform Nansen, who pointed to the potential for a sustained bullish trend in the crypto market, driven by what they refer to as the "Fed put"—the belief that the Federal Reserve will step in to support the economy and financial markets as inflation cools and growth stabilizes.
Ambar Warrick contributed to this report.
Source: Investing.com
