This week was filled with events that led to significant market shifts. Federal Reserve Chair Jerome Powell announced a 50 basis point interest rate cut, impacting various assets, including Bitcoin.
Market Reaction to Fed Decision
The Federal Reserve's announcement of a 50 basis point rate cut was long-awaited by a portion of the market. This decision led to the S&P 500 hitting another all-time high and gold continues to rise. Bitcoin also saw a significant increase, reaching $64,133.
Bitcoin Price Movement Analysis
Despite the confirmation of the long-awaited Fed policy shift, Bitcoin's daily price action remains within its six-month range. The Bitcoin chart shows a structurally ordered downtrend. On higher timeframes, the price continues to make weekly lower highs, driven significantly by futures liquidations.
Achievements and Future Outlook
Following the recent FOMC meeting, there has been an uptake in Bitcoin's open interest. If traders persist in targeting the $64,000 to $66,000 zone, there is a possibility of altering the higher timeframe market structure. The synchronicity of the Fed rate cut nearly aligns with the start of Q4 and the news of the United States SEC approving options on BlackRock’s spot Bitcoin ETF.
In light of the current changes in Central Bank policy and other factors, the Bitcoin market may face both new challenges and opportunities. Investors are advised to closely monitor changes and emerging trends.
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