After remaining sideways for over three hours hovering around the $58k mark, Bitcoin once again showed upward momentum, hitting a week-on-week high of $61.3k on Tuesday.
At press time, Bitcoin is trading at $60.5k, gaining 4.2% over the last 24 hours. On the weekly chart, Bitcoin is up 7% after regaining support around the $57k level over the weekend.
The 30% day-on-day spike in BTC trading volume suggests fresh investments have flowed in as the Federal Reserve’s much-anticipated meeting started on Tuesday. The meeting will last two days, with any announcement related to a rate cut expected on Wednesday.
Altcoins, including Ethereum and Solana, have also posted minor gains during the day. Ethereum is up over 2% to $2,339, while Solana is trading at $132, up 1% on the intraday chart.
Why Is Bitcoin Bullish?
Bitcoin and the overall crypto market is bullish as it anticipates a 50-basis-point rate cut following the ongoing federal reserve meeting which started this week. With just 14 hours remaining until US Federal Reserve Chairman Jerome Powell is scheduled to speak as part of the two-day meeting, the chances of a 50-basis-point cut are higher than before.
According to the CME FedWatch tool, there is a 65% probability of a 50-basis-point rate cut as of today. While many analysts believe there could be a 25-basis-point rate cut, contrary to market expectations, the probability of that happening is now only 35%.
The emerging and digital assets markets are bullish in anticipation. A 50-basis-point Fed rate cut is likely to increase investors’ risk appetite, potentially leading to fresh inflows into these markets.
It has been four years since the Federal Reserve last slashed rates to near zero in March 2020.
While it may be too early to definitively predict a bull run, Bitcoin has managed to breach the $59k level for the first time in two weeks and sustain it. If the Fed rate cuts occur as expected, we could see Bitcoin forming stronger candles to reclaim the $65k level.
