Cryptocurrencies saw a significant rise on Saturday as traders speculated that the Federal Reserve might cut interest rates next week. Bitcoin is currently retesting the crucial resistance point at $60,000.

Bitcoin Price Surge

Bitcoin’s price surged to $60,000, marking a notable increase. Altcoins also experienced gains:

  • Celestia (TIA) rose by 12% to $4.50, reaching a high of $4.59, its highest level since August 31.
  • Popcat (POPCAT) jumped to $0.80, a 71% increase from its lowest level this month.
  • Pepe (PEPE), a popular meme coin, saw a 6% rise.
  • JasmyCoin (JASMY) and MOTHER Iggy (MOTHER) each increased by over 5%.

The overall market cap of all coins tracked reached over $2.20 trillion, according to CoinGecko data.

Market Recovery

This cryptocurrency recovery coincided with positive trends in other assets. Gold reached a record high of $2,580, while American equities also rebounded. The Dow Jones rose by 0.80%, and the S&P 500 and Nasdaq 100 indices increased by 0.55% and 0.60%, respectively.

The positive performance came after the U.S. released encouraging inflation data on Wednesday. The data indicated that headline consumer inflation dropped to 2.5%, the lowest level in over two years, increasing the likelihood of a Federal Reserve interest rate cut on September 18.

Impact on Risky Assets

Should the Federal Reserve cut rates, risky assets like cryptocurrencies are expected to perform well, as seen in 2020 and 2021. In contrast, they experienced declines when interest rates spiked in 2022.

MicroStrategy’s Continued Bitcoin Accumulation

Bitcoin’s price also rose after Michael Saylor announced that MicroStrategy had acquired an additional 18,300 coins worth $1.1 billion. MicroStrategy is one of the largest corporate holders of Bitcoin, with 244,800 coins in its portfolio.

Whale and Shark Accumulation

Signs of whale and shark accumulation have also contributed to Bitcoin’s rise. The volume of Bitcoin on exchanges continues to fall, reaching its lowest level in years. This accumulation and reduced exchange volume set a positive stage for Bitcoin.

Bitcoin is within inches of regaining the coveted $60K market value for the first time since falling below it on August 29. The mid-term accumulation from sharks and whales, combined with falling levels of BTC on exchanges, sets the stage for crypto to roll again.

Stablecoin Holdings by Smart Money

Data from Nansen shows that stablecoin holdings by smart money are declining. These holdings peaked in May 2022 during the Terra ecosystem crash and again in November 2022 during the FTX collapse.

Potential Risks

Despite the positive trends, Bitcoin and altcoins like Celestia, Jasmy, and Pepe face risks. The narrowing spread between the 50-day and 200-day moving averages could lead to a death cross, potentially resulting in more downside. For instance, Ethereum dropped by 15% after forming this pattern in August.

Stay updated with the latest cryptocurrency news on Global Crypto News for more insights and developments in the crypto world.

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