Bitcoin Price Today Drops Below $64k as U.S. Dollar Strengthens Amid Anticipation of Further Federal Reserve Signals
Bitcoin’s price tumbles below key hurdles after dollar’s rebound, uncertainty from Federal Reserve
Bitcoin’s price fell on Thursday, slipping below a crucial level of resistance as rising pressure came in the form of a strengthening U.S. dollar. Cryptocurrency prices had already started to fall ahead of signals the Federal Reserve was ready to throw at a market already worn ragged by uncertainty.
Bitcoin was at 01:07 ET (05:07 GMT) has lowered its value by 1.2% to $63,440.2. The decline positioned the largest cryptocurrency in the world below a critical break level-marked at $65,000-by which analysts and traders believe is vital to continue momentum in the short term.
The level has been closely watched since Bitcoin last traded above the line in early August by market participants.
Market analysts and traders say $65,000 is a critical resistance area for bitcoin. Coin Desk’s report reveals just how hard it has been for Bitcoin to hold its ground above that level. This has meant that bitcoin has largely traded between the $50,000 and $60,000 since March when the price reached an all-time high, with very little significant move past this range.
Another reported find was an old wallet reactivated after years of inactivity and containing close to $3 million worth of the cryptocurrency. This kind of speculation partly started when the old wallet suddenly came back to life, partly because its tokens were moved to an exchange. Movements like that are sometimes reason for speculation over large sell-offs that eventually affect market sentiment.
Another front that may contribute to more turmoil for cryptocurrencies includes expirations of billions of dollars worth of Bitcoin and Ethereum contracts expected to occur on Friday. The timing of such expirations can be critical because it may spur price movements, fling sentiment and action into a pendulum swing by the trading community.
BlackRock’s iShares Bitcoin Trust and Institutional Interest
Much of the focus among market participants remains on SEC approval for options on BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). Once approved, it would unlock a floodgate of institutional capital into the cryptocurrency space. BlackRock’s involvement betrays broadening acceptance of Bitcoin in traditional finance circles, which would be a strong bullish catalyst for prices.
Dollar Strength Weighs on Crypto Markets
In yet another round of selling, the cryptocurrency market also fell due to a sharp rebound in the U.S. dollar, which gained strength after hitting a one year low.
The dollar’s rebound came amidst uncertainty over future interest rate cuts by the Federal Reserve. Uncertainty has been rife over Fed actions since the central bank cut its interest rates by a significant 50 basis points just the previous week.
A number of Federal Reserve officials have indicated in the past week that they supported last week’s rate cut while questioning the speed of further easing.
Investors are looking for further clarity from Fed Chair Jerome Powell, who is scheduled to speak later on Thursday. His comments could give further insight into the course of monetary policy going forward.
Other than the speech of Powell, there will probably be decisive data that would affect market development within the week.
A revised reading for the second-quarter Gross Domestic Product and weekly jobless claims are due this week and may provide more insight into what is happening in the U.S. economy.
And on Friday, the Personal Consumption Expenditures price index of the Federal Reserve will come out-the central bank’s preferred inflation gauge. The information will be closely watched since it will influence the Fed’s decisions going forward with respect to the rate.
Altcoins and Memecoins Follow Bitcoin’s Strategy
The downtrend in Bitcoin sent the bigger cryptocurrency market into a spiral as major altcoins kept performance subdued. Ethereum, the second-most valuable cryptocurrency by market capitalization, traded 0.8% lower at $2,604.67.
Other notable altcoins are XRP, Solana (SOL), Cardano (ADA), and Polygon (MATIC), and have all traded within a flat-to-lower range, showing a broader trend of weakness in crypto space.
Other memecoins like DOGE, too, fell by 0.3% over the period. This only made the overall weak bullish momentum in the cryptocurrency space stand out even more.
Conclusion: Wait for Catalysts in the Markets
Again, the cryptocurrency market, paced notably by Bitcoin, is going to struggle, yet is being buffeted by external headwinds from the apparent strength of the U.S. dollar and the uncertainty surrounding Federal Reserve policy.
To watch short-term interest in the $65,000 resistance level for Bitcoin and to continue on developments around institutional interest in the product, such as BlackRock’s Bitcoin options.
Clearly, volatility seems alive and kicking in this market, which remains sensitive to contract expirations as well as to the upcoming economic data releases from the United States.
It is sitting at the critical juncture and further volatility potential in near terms as traders await more cues from Federal Reserve officials and macroeconomic factors that may now start impacting the market.
