Bitcoin (BTC) Approaches Key Profitability Milestone: Latest Insights and Market Analysis
Bitcoin (BTC) Hits All-Time High and Gets Close to Profitability Break-Even
Bitcoin (BTC) was trading at $65,250 during Thursday’s trading session, where the levels had last been observed in August. This upward movement naturally catches the eye of the broader crypto space since BTC approaches a key profitability threshold.
As reported by on-chain analytics company Notebook, Bitcoin has been constantly pushing upward in price, and hence, still continues to increase the number of holders in profit.
Moreover, according to the platform, Bitcoin should ‘only’ break above $65,000. As a result, with such a breakthrough, more than 90% of Bitcoin holders will then be in profit.
Such a milestone was last reached in July when Bitcoin made its way to new all-time highs but still couldn’t hold at those prices.
Historical Performance and Potential Profit-Taking
As July was setting in, Bitcoin’s momentum had begun to decrease and it could not overcome the $70,000 resistance level. It could not, and this failure triggered profit-taking, pulling the price down to $49,050 on August 5 before rebounding.
Now, traders and analysts are watching the course of events of this rally to see if the story is going to be different from the profit-taking event in July. Breaking the $65,000 level would be necessary.
Breaking above it would trigger further advancements; failing to hold on could still take the pair down for another round of selling pressure.
At the time of writing, Bitcoin’s price had rallied to $64,536, jumping up by 0.92% in the last 24 hours. The bullish mood has caught several other cryptocurrencies as well, such as Shiba Inu (SHIB), Dogwifhat (WIF), and Worldcoin (WLD), where massive rallies have been seen.
Federal Reserve and Bitcoin Market Sentiment
What’s more, the Federal Reserve’s monetary policy has been a significant catalyst to the recent price uptrend in Bitcoin.
In the past week alone, the Fed delivered its initial round of interest rate cuts, which only supported the risk assets, including Bitcoin.
So, with inflationary concerns easing and the prospect of a possible 50-basis-point rate cut in November, there is enough momentum to stay enthusiastic about potential upside moves in Bitcoin.
In addition to Bitcoin monetary policy, the current Chairman of the Securities and Exchange Commission, Gary Gensler, provided a regulatory boost to this crypto asset during a Wednesday hearing of the Financial Services Committee.
Answering questions from the Republican Committee Chair, Patrick McHenry, Gensler made it clear that Bitcoin is not a security.
The declaration further improved market sentiment due to these clear regulations, often cutting down on uncertainties; attracting institutional as well as retail investors alike to cryptocurrency markets.
Effect of Federal Reserve Decisions and Economic Data
Taint which may signal that the bullish momentum will not mean much for traders and investors. After all, they will be paying attention to the speeches by policymakers from the Federal Reserve as well as the economic data.
Key policymakers such as Jerome Powell, the Fed chair, will give insights to traders and investors on the pace of the interest rate cuts. The general consensus is that if the Fed is going to signal further easing of monetary policy, then risk assets such as Bitcoin continue to run.
The monetary decisions of the Federal Reserve would be the most crucial determinants of market sentiment on Bitcoin since lower interest rates typically beget higher investment in risker assets like the crypto-construction.
In addition, inflation, employment, and GDP growth-related data will also shape outlook in Bitcoin as well as the overall crypto-market.
Conclusion: Bitcoin’s Path Forward
As Bitcoin approaches the $65,000 profit-taking milestone, the optimism remains for it to make new highs.
Historically, however, profit-taking appears to have been the wall that halted the trend for this cryptocurrency, at least most of the time due to its failure to surmount key resistances.
For regulatory news, it was a welcome clarification by way of Gary Gensler to finally clarify the non-security status of Bitcoin.
Such movement can be supported by the broader macroeconomic environment, which is driven by the policy decisions of the Federal Reserve.
The potential 50-basis-point rate cut will keep traders and investors engaged and watching Bitcoin’s next moves in price and institutional involvement.
Right now, Bitcoin remains positive on the trajectory, but market participants are invited to be wary of volatilities and externalities, such as monetary policy turnarounds and profit-taking behavior.
Whether the rally will push bitcoin past new highs or hit into enough resistance remains to be seen.
