At Coinbase, the institutional trading volume for Bitcoin has hit a record of 75% of the total trading volume. This, according to experts, may signal a price increase for the cryptocurrency in the coming days.
Institutional Trading on Coinbase
Charles Edwards, founder of Capriole Investments, noted that this level of institutional trading has historically preceded price increases for Bitcoin within days.
Rate Cut Expectations and Market Impact
July's US inflation data came in as expected, reinforcing views that the Federal Reserve will begin cutting interest rates as early as next month. Edwards pointed out that lower borrowing costs typically fuel demand for risk assets, with Bitcoin often reacting more sharply than traditional markets.
Forecasts and Possible Market Scenarios
CME’s FedWatch Tool now indicates a near-100% probability of a 25-basis-point rate cut in September. Some traders are even speculating on a larger 0.5% cut due to weak employment figures, a scenario that could accelerate Bitcoin’s next upward movement.
The observed growth in institutional volume on Coinbase, combined with rate cut expectations, may create favorable conditions for further Bitcoin price increases in the near future.