The Federal Reserve issued a "reassurance" to cut interest rates, BTC rose and recovered $67,000

Original title: "The Federal Reserve issued a "reassurance" for interest rate cuts, and BTC recovered US$67,000"

Original author: Mary Liu, compared to BitpushNews

On Wednesday, the Federal Reserve kept interest rates at a range of 5.25%-5.5% as expected. In addition, the dot plot also maintained expectations for three interest rate cuts this year. This "reassurance" eased investors' concerns that the Federal Reserve will take more measures. Concerns over hardline stance.

The three major U.S. stock indexes collectively closed higher. The Dow Jones Industrial Average initially closed up 1.03% , the S&P 500 Index rose 0.89% , and the Nasdaq Composite Index rose 1.25%  ;, all hit new closing highs, and the U.S. dollar index (DXY), which measures the U.S. dollar's strength against other major currencies, fell nearly 0.7% from its intraday high, indicating that investors' risk appetite has increased.

After the Federal Reserve meeting, Bitcoin reversed higher, hitting an intraday high of $67, 781. Earlier in the day, BTC had fallen to $60,  ;$793.60.

Ethereum recovered the day After an earlier 6% drop, it recovered to $3,379.43 after Coindesk and other foreign media reported that the Ethereum Foundation faced investigations from unnamed governments and the US SEC into classifying the asset as a security.

Solana up 7% Dogecoin (DOGE), Litecoin (LTC) and Bitcoin Cash (BCH) lead among mainstream altcoins rallied, with Polygon's Matic token up 1.5%.

Cryptocurrency-related stocks rebounded collectively. Coinbase rose 11%. MicroStrategy  rose 9%  after falling about 20% earlier in the week. In the crypto mining sector, Iris Energy and CleanSpark rose 26% and 22% respectively, Marathon Digital rose 16%, and Riot Platform rose 11%.

The Fed did not trim expectations for a rate cut

Ahead of the meeting, some investors worried that a recent series of inflation reports could result in even less rate cuts than the market expected. But the Fed reiterated its December forecast that it planned to cut interest rates three times before the end of the year. Even so, the Fed said it needed more evidence that inflation was slowing before it began to ease monetary policy. The central bank said: "The Committee expects that in the review period, It is not appropriate to lower the target range until we are more confident that inflation will continue to move toward 2%."

David Russell, head of global market strategy at TradeStation, said: "Inflation has increased this year, but Jerome Powell has not changed his tune. To investors' relief, the point Three interest rate cuts remain in the lineup, which supports the market and risk appetite." Zach Pandl, managing director of Grayscale Research, predicted in a report , the upcoming situation may support the price of Bitcoin.  Pandl believes: "If interest rate cuts remain the base case, the cryptocurrency outlook still looks favorable. A soft landing in the economy, Fed rate cuts, and a contentious presidential election should be a supportive macro backdrop for Bitcoin."

Analyst: $50,000-52,000 is the "bottom line" for this bull market

Bitcoin The recent weakness began as traders began taking profits, with Bitcoin surging from the start of the year to around 70% of its peak last Wednesday. Data from CryptoQuant shows that on March 12, the number of short-term holders selling Bitcoin at a profit increased significantly. According to CoinGlass, this profit-taking led to a surge in long liquidations on leveraged Bitcoin positions that continued into the beginning of the week.

In addition, Bitcoin ETFs have also seen some cooling momentum, with net outflows from Bitcoin ETFs totaling $154.4 million on Monday, according to data from BitMEX Research. This is the first time since March 1 that the ETF has recorded net outflows.

Citi analyst Alex Saunders said in a report on Wednesday: "The ETF-induced rally has at least temporarily stalled as net inflows began to slow. Since listing Since then, spot Bitcoin ETF inflows have totaled $12 billion, but a slowdown in inflows could lead to weaker price action after Bitcoin recently hit all-time highs."

Vijay Ayyar, vice president of international markets and growth at cryptocurrency exchange CoinDCX , said in an interview with Bloomberg that in the previous Bitcoin bull market, when the market started to pick up A 20% -30% pullback is normal during the heat, but if Bitcoin falls below the $60, 000 threshold, it could weaken further to test $50, 000 to $52,  000 level, which will be the bottom line to maintain this bull market.

Ruslan Lienkha, head of markets at YouHodler, said that Bitcoin prices will continue their long-term upward trend and viewed the latest correction as " Take a breather," he said. "We may see prices consolidate for a while, trading around $10,000 above or below current levels, before the next rally to all-time highs. So it's just a matter of long-term investors accumulating long positions now. Another opportunity".

Lienkha  added: “As futures funding rates have begun to normalize, more frequent market volatility has eased, which means leveraged exposure to cryptocurrencies Demand has decreased. However, open interest and trading volume remain high."

According to data from the CME FedWatch Tool, the market currently expects the FOMC on July 31 The meeting will be preceded by at least one rate cut, with rates set to fall by about 50 to 100 basis points by the end of 2024.

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