Bitcoin Nears Key Breakout as Global Monetary Easing Boosts Risk Appetite

Bitcoin’s price surged on Wednesday, driven by a wave of global monetary easing that funneled more investments into risk-driven assets. The world’s largest cryptocurrency is now eyeing a major breakout, supported by recent stimulus measures from China and expectations of interest rate cuts from both the Swiss and Swedish central banks this week.

By 00:47 ET (04:47 GMT), Bitcoin had risen 1.9% to reach $64,253.3, signaling a positive trend in the cryptocurrency market.

Bitcoin Approaches $65K Resistance

Bitcoin has shown a remarkable recovery over the past two weeks, benefiting from increased risk appetite fueled by the Federal Reserve’s recent interest rate cut—its first since 2020. This move has set the stage for an easing cycle, with Citi analysts predicting rates could fall by at least 125 basis points by the end of 2024. Goldman Sachs also forecasts that the Fed will cut rates by 25 basis points at each meeting between November and June 2025.

According to Coindesk, Bitcoin’s next key target is to break sustainably above the $65,000 mark, a level it last approached in August. Achieving this milestone could pave the way for further gains, though Bitcoin has struggled to maintain levels above $65,000 since reaching its record high in March.

Lower interest rates are expected to attract more investments into speculative assets like cryptocurrencies. However, Bitcoin’s rally has lagged behind the broader stock market, which saw Wall Street hit record highs following the Fed’s rate cut decision.

Despite these positive developments, sentiment towards cryptocurrencies remains relatively subdued, partly due to waning retail interest and an uncertain regulatory environment, especially in light of the ongoing U.S. presidential race.

Altcoins Edge Higher with Bitcoin’s Gains

Other cryptocurrencies mirrored Bitcoin’s rise, though their gains were more modest. Ethereum (Ether), the second-largest cryptocurrency, rose 0.2% to $2,626.93.

Among altcoins, SOL (Solana) and ADA (Cardano) led the charge, gaining 3.7% and 7%, respectively. XRP was up by 1%, while MATIC (Polygon) inched higher. Meme token DOGE (Dogecoin) also saw a 2.3% increase.

Global Interest Rate Outlook Remains in Focus

Investors’ attention is now on upcoming central bank decisions that could impact the market further. Sweden’s Riksbank is widely expected to cut rates later on Wednesday, while the Swiss National Bank is anticipated to follow suit on Thursday.

In the U.S., all eyes are on Federal Reserve Chair Jerome Powell, who is set to speak on Thursday, along with the release of the PCE price index data—the Fed’s preferred inflation gauge—on Friday. These events will likely provide further insights into the future direction of interest rates, which could have a significant impact on the cryptocurrency market in the coming weeks.

Outlook

Bitcoin’s attempt to break the $65,000 resistance level will be closely watched by investors, as it could signal a sustained bullish trend in the cryptocurrency market. The broader altcoin rally and the influence of global monetary policies will also play a pivotal role in shaping the crypto landscape in the near future.