Bitcoin Surges 5% as Fed Comments Reduce Rate Hike Bets
Bitcoin surged nearly 5% on Thursday after comments from Fed Governor Christopher Waller reduced bets on rate hikes, giving cryptocurrencies a boost. As a result, Bitcoin jumped to $81,545 and Ethereum rose by 4%. Other digital assets also saw significant gains, with XRP increasing 10% and Dogecoin rising 10% as well.
The surge in cryptocurrency prices was driven by the reduced uncertainty around rate hikes, which had been weighing on markets. As traders adjust their expectations, they are shifting towards riskier assets like cryptocurrencies. This is evident from the data provided by SoSoValue, which shows net inflows of $101.2 million into spot Bitcoin ETFs on Wednesday.
However, Crypto Patel remains cautious and warns that a break below $60,000 could signal renewed downside risk for Bitcoin. He notes that reclaiming $81,000 puts $83,000 in focus, but emphasizes the importance of a strong higher-time frame close above this level to invalidate the bearish lower-high, lower-low structure.
In related news, Coinbase has added Elon Musk's alumni to its board amid expansion plans in Canada. Meanwhile, Bitcoin could reach $90,000 by October if it maintains its current pace and other conditions are met, according to an analyst. However, September is traditionally a challenging month for Bitcoin, and investors should remain cautious.