- Following the release of the FOMC minutes, Bitcoin’s price rose by 2.53%, surpassing $61,000, while the overall crypto market increased by 2.35%.
- Alongside Bitcoin’s resurgence, altcoins demonstrated even stronger gains. Binance’s BNB coin jumped 4.26% as the exchange announced plans to hire 700 employees.
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. The positive development is that the Federal Reserve is soon leaning toward interest rate cuts of 25 bps in September next month.
During the meeting, other participants also agreed that the United States has made considerable progress in controlling inflation and is now moving towards the Fed’s target of 2%. Additionally, the participants stated that the rising unemployment rate amid the dropping inflation provides a strong reason for the Fed to initiate the rate cut measures and move towards quantitative easing.
The participants also cautioned that holding up to higher interest rates for long will further weaken the economy. Thus, the consensus among market traders shows a 100% possibility of the U.S. central bank cutting the interest rates next month. The only doubt among the traders is whether this will be a 25 bps rate cut or a 50 bps rate cut.
Bitcoin and Crypto Market Stage Strong Recovery
Following the release of the FOMC Minutes, the broader crypto market has surged by 2.35% as of press time. Bitcoin’s price is also up 2.53%, trading at $61,004, and its market cap is also soaring above $1.2 trillion.
Over the past few days, the Bitcoin price has been flirting around $60,000 amid a tight fight between the bulls and the bears. Furthermore, the on-chain data shows that Bitcoin volatility has shot up to levels last seen during its all-time high in March. As the volatility rises, BTC traders believe that this could serve as a catalyst for Bitcoin to break out of its consolidation phase finally. However, the BTC price should firmly hold above $61,000 levels for this to happen. Some market analysts believe that Bitcoin could be heading for a parabolic rally in Q4, reported 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 Pack A Greater Punch
Apart from Bitcoin, the recovery in the altcoins market is even stronger. Binance’s BNB coin is up by 4.26% and is currently trading at $580, as the crypto exchange announced its hiring spree this year. Binance plans to hire 700 employees to handle global compliance issues.
Cardano’s native crypto ADA also surged by 6% on Wednesday, as the Cardano blockchain prepares for the Chang hardfork, scheduled ahead on August 27, per the CNF report. On the other hand, Tron’s TRX has also been on the radar amid the memecoin frenzy on the SunPump platform.
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