Cryptocurrencies surged on Saturday as traders anticipated the Federal Reserve would cut interest rates next week, while Bitcoin retested a crucial resistance point at $60,000.
Bitcoin price rises to $60,000
- Celestia (TIA) shares rose 12% to $4.50, hitting a high of $4.59 — their highest since Aug. 31.
- Popcat (POPCAT) stock jumped to $0.80, 71% above its low this month.
- Pepe (PEPE), the popular meme coin, is up 6% while JasmyCoin (JASMY) is up
- MOTHER Iggy (MOTHER) shares are up more than 5%.
Overall, the market cap of all coins tracked by CoinGecko has jumped to over $2.20 trillion.
This recovery coincided with the performance of other assets, as gold jumped to a record high of $2,580, while US stocks continued their recovery, with the Dow Jones index rising by 0.80%, while the S&P 500 and Nasdaq 100 indices rose by 0.55% and 0.60%, respectively.
The performance came after the United States published encouraging inflation data. U.S. interest rates fell on Wednesday, increasing the chances that the Federal Reserve will begin cutting rates on Sept. 18. Data showed that core consumer inflation fell to 2.5%, its lowest level in more than two years.
Risky assets like cryptocurrencies are expected to perform well if the Fed cuts interest rates, as it did in 2020 and 2021; they crashed when rates rose in 2022.
MicroStrategy continues to accumulate BTC
Bitcoin also surged after Michael Saylor revealed that MicroStrategy had acquired an additional 18,300 coins worth $1.1 billion.
It is the largest holder of Bitcoin with 244,800 in its wallet.
Bitcoin’s value also surged as signs emerged that whales and sharks were piling into the currency. As we wrote, Bitcoin volume on exchanges continued to decline, hitting its lowest levels in years.
Meanwhile, data from Nansen shows that stablecoin holdings by smart money have continued to decline.
The chart below shows that these holdings peaked in May 2022 with the collapse of Terra and its ecosystem, leading to a risk-off sentiment. They then peaked in November 2022 with the collapse of FTX.
However, Bitcoin and altcoins like Celestia, Jasmy, and Pepe are at risk of forming a death cross since the difference between the 50-day and 200-day moving averages has narrowed.
A death cross could lead to further declines. For example, Ethereum dropped 15% after the pattern formed in August.
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