Originally published on: August 01, 2024
Bitcoin has slipped below the $65,000 mark following the United States Federal Reserve’s decision to maintain interest rates unchanged, coupled with reports of escalating tensions in the Middle East.
As of July 31, Bitcoin’s price dropped to $64,549, marking the first time it has fallen below $65,000 since July 25, according to data from CoinMarketCap. Despite a brief spike to $65,075, the cryptocurrency has been unable to surpass this key level and is currently trading at $64,470.
The price movement coincided with the Federal Open Market Committee’s (FOMC) decision to leave interest rates between 5.25% and 5.5%, as expected. Fed Chair Jerome Powell emphasized the economy’s solid growth trajectory, positive indicators for GDP growth, and plans to curb inflation.
While market expectations initially did not anticipate any rate adjustments until September, the relative strength index (RSI) for Bitcoin suggests an oversold condition, potentially signaling a buying opportunity amidst the FOMC’s decision.
Moreover, reports of political unrest in the Middle East, such as the assassination of Hamas leader Ismail Haniyeh in Tehran, have further impacted Bitcoin’s price. This trend is reminiscent of previous price declines linked to regional conflicts in the area.
Looking ahead, the likelihood of a September rate cut remains uncertain pending inflation data over the next two months. However, market analysts suggest that Fed Chair Powell’s optimistic outlook may bode well for Bitcoin and alternative cryptocurrencies in the near future.
While this article does not provide investment advice, it underscores the importance of conducting thorough research and analysis before making any trading decisions. For more insights on market trends and investment opportunities, subscribe to the Markets Outlook newsletter delivered every Monday.