Bitcoin climbs as analyst expect swinging performance until yearend

Bitcoin climbed on Tuesday to nearly $61,000, mirroring gains in other risky assets. On Wednesday it surged further to the daily high of $61,782, and eventually stabilized around $61,100, up by around 3.4%. This rise is likely due to growing expectations of a Federal Reserve rate cut in September.

However, Bitcoin remains stuck in a trading range most of the year, struggling to break new highs due to waning investor interest.

Fed, Rate Cut Hopes:

Bitcoin’s rise aligns with a broader risk-on sentiment in markets, fueled by hopes of a September rate cut. Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday is a key event to watch. Lower interest rates are generally positive for risky assets like Bitcoin.

Analyst Forecast:

Bitcoin will likely trade sideways until year-end due to economic and regulatory factors, according to several analysts. A new all-time high is possible, but it depends on positive events like progress on inflation targets and renewed investor interest.

Yen and Potential Risks:

A recent rise in the Japanese yen poses some risk to Bitcoin, as it can trigger selling in speculative markets like crypto. This carry trade unwind happened earlier in August, but the yen’s renewed strength could create headwinds again.

Altcoins Surge Too:

Other cryptocurrencies also rose on Tuesday, with Ethereum, Solana, and others gaining ground. Bitcoin and other cryptocurrencies are enjoying a short-term boost due to potential rate cuts, but long-term prospects seem uncertain due to macro and regulatory concerns.