Bitcoin continues to hover around $110,000 as investors prepare for the Federal Reserve’s interest rate decision on September 17. Despite mixed sentiments, the cryptocurrency gained 3.29% in the last 24 hours.
Fed Rate Cut Expectations Rise
According to reports, nonfarm payrolls rose by only 22,000, significantly below the 75,000 estimate. The unemployment rate climbed to 4.3%, indicating a cooling labor market. Standard Chartered now expects a 50-basis-point rate cut this month. Analysts believe the Fed's decisions may echo a trend established in September last year.
CITE_NA: "The labor market shifted from 'solid' to 'soft' in less than six weeks."
Why Bitcoin May Struggle Beyond $110K
Despite expectations of a rate cut, analysts warn it may not necessarily lead to a price increase for Bitcoin. Vincent Liu, CIO of Kronos Research, noted that a rate reduction could reflect weakness in economic data. They also observe that ETF inflows have slowed down, which might restrain Bitcoin’s rally. The key support level remains at $110,000, while resistance levels are noted at $113,400 and $115,400.
Conclusion and Bitcoin's Future
Currently, Bitcoin's future remains uncertain. The Fed’s decision may indicate market directions. A 25-basis-point cut may lead to minor changes, while a larger 50-basis-point reduction could indicate worsening economic conditions.
Investor attention is focused on the upcoming Fed meetings and subsequent employment reports. Depending on the figures, markets may react accordingly.
