Bitcoin (BTC) Price Rallies to $64,955 After Jerome Powell Hints at Fed Rate Cuts

Bitcoin bulls strongly targeted the $62,000 level this month. BTC price saw a 5% uptrend in the last 24 hours, with the price almost hitting $65,000

Bitcoin price surged to a high of $64,955 on Friday after Federal Reserve Chair Jerome Powell gave his strongest signal yet on Fed rate cuts. This triggered an upside momentum in the broader crypto market, with the market cap jumping more than 4% to $2.27 trillion.

Altcoins including ETH, SOL, XRP, DOGE, and other leading crypto also witnessed significant recovery on massive rebound in sentiment. Crypto Fear and Greed Index rebounded from fear (34) to greed (56) in just a day.

Reasons Why Bitcoin Price Is Going Up Today

Bitcoin bulls strongly targeted the $62,000 level this month. BTC price saw a 5% uptrend in the last 24 hours, with the price almost hitting $65,000. Here are the top 5 reasons why Bitcoin price is rising and may rally to a new all-time high in the coming months.

Sentiment Rebound Following FOMC and Jackson Hole Event

Positive hints of Fed rate cuts from the FOMC Minutes and Fed Chair Jerome Powell speech at the Jackson Hole Symposium were primary factors behind the sudden upsurge in Bitcoin price.

Dovish comments from Fed officials such as Neel Kashkari, Alberto Musalem, Raphael Bostic, and Mary Daly and their affirmation on starting Fed rate cuts earlier this week triggered cautious buying by investors. They also agree on potential rate cuts starting in September.

While Powell didn’t provide exact indications on the timing or extent of rate cuts, he affirmed that it’s time for a monetary policy pivot amid slowing inflation and weakening of the US labor market. He also added that the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.

Bitcoin Chart Flashes Technical Strength

Bitcoin chart is showing technical strength and indicators flashing buy signals. Bitcoin price is currently trading above the support at $62K. It is now facing resistance at $65K.

In the daily timeframe, Bitcoin is now trading above 50-DMA (blue), 100-DMA and 200-DMA (red). Traders also expect the ‘Golden Cross’ pattern formation in the coming days as 50-DMA is likely to crossover above 200-DMA, which indicates the possibility of a long-term bull market.

Bitcoin Options Target $100K By Year-EndBitcoin options traders are pricing in a 50% rally in BTC price by December 2024, with a high strike price call option showing traders’ bullish outlook on Bitcoin price.

The open interest for the December 2024 call option at a strike price of $100,000 reached nearly $100 million earlier this week. This indicates that a large number of traders are betting on Bitcoin price hitting $100,000 by the end of the year.

However, it’s important to note that options trading involves high risk and traders should always trade with caution, especially in the volatile crypto market.

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