Crypto Market Surges on Fed Rate Cut Expectations

- Bitcoin and Ethereum Prices Rise by 2%-3% Respectively - Market Divided Over Federal Reserve Rate Cut [Unblock Media] Bitcoin and Ethereum had a strong day, rising by 2%-3% each over the past 24 hours. This increase is attributed to the overall upward trend in the cryptocurrency market, along with expectations of a Federal Reserve rate cut. Bitcoin almost reached $60,000 on Friday, showing strong gains even in traditional markets. The lowest point for Bitcoin was last week, and according to chartist Bob Loukas, there's a high possibility of further increase based on daily cycle theory. Next week, the Federal Reserve is expected to cut interest rates, but market participants are divided over the extent of the reduction. Some anticipate a 25 basis point cut, while others expect a larger cut of 50 basis points. According to the CME FedWatch Tool, the probabilities are almost evenly split. Rate cuts generally have the potential to push up the prices of risk assets like stocks and cryptocurrencies by stimulating consumption and investment. Bitcoin experienced a temporary 1% drop to $57,600 after MicroStrategy, a software company, purchased 18,300 BTC for $1.1 billion, but quickly recovered its losses and surged again, closing at $59,700. Large-scale Bitcoin purchases by major players like MicroStrategy can create a significant impact on the market. This kind of investment directly influences Bitcoin's price volatility and can provide confidence to investors, potentially driving prices even higher. Ethereum has surpassed $2,400 again, rising 2.7% during the same period. According to cryptocurrency analysis firm IntoTheBlock, Ethereum's transaction fee revenue increased by nearly 60% last week. This increase in fee revenue implies higher network usage, which could lead to increased demand and prices for Ethereum. The CoinDesk 20 Index rose by 2.5%, led by double-digit gains in Polygon's native cryptocurrency, MATIC. This was the result of the recently upgraded POL token being added to Binance for spot and perpetual trading. According to Bitcoin's daily cycle analysis, the asset tends to form highs and lows at regular intervals. Bob Loukas explained that Bitcoin formed a local low below $53,000 on September 6 and is now only on the seventh day of a new cycle. The previous daily cycle lasted over 60 days and peaked on the 24th. Therefore, he suggests that BTC has ample time to form new highs. The U.S. stock market also showed gains, with the S&P 500 index rising to within 1% of its record high in July. Gold prices hit an all-time high of $2,600 per ounce, and the decline of the U.S. dollar against major currencies supported a rally across various assets. Gold, a traditional safe-haven asset favored during economic uncertainty, and the S&P 500 index, a barometer of overall economic conditions and corporate performance, are key indicators for many investors. Fluctuations in these indicators often have a direct impact on the cryptocurrency market, especially during periods of high global economic uncertainty. The key event to watch next week is the Federal Open Market Committee (FOMC) meeting. This meeting is expected to result in the Federal Reserve's first rate cut since 2020. While some believe that the rate cut will revive the market, others are concerned about a potential recession. In conclusion, the potential for an interest rate cut by the Federal Reserve warrants continued close monitoring of price fluctuations in Bitcoin and Ethereum.