As the Federal Open Market Committee (FOMC) prepares for its much-anticipated meeting on September 18-19, Bitcoin (BTC) has made a significant jump, surpassing $61,000 for the first time in three weeks. This marks a notable recovery for the cryptocurrency market.
From Monday’s Drop to Bitcoin’s Surge
Earlier this week, Bitcoin saw a sharp decline, dropping from $60,000 to $57,600. However, the market quickly shifted as bullish momentum returned, driving the cryptocurrency back above $61,000. This price level hasn’t been reached since mid-August, when BTC briefly dropped below $59,000 after a swift decline.
The current price surge comes as investors focus on the upcoming FOMC meeting, where the US Federal Reserve is expected to reduce key interest rates—something that hasn’t been done in years. The decision could have significant implications for both traditional markets and cryptocurrencies.
Altcoins Rise Alongside Bitcoin
Bitcoin’s upward movement has positively impacted the broader cryptocurrency market, with major altcoins also experiencing gains. Ethereum (ETH) has seen a 4% increase, nearing $2,400 after dropping to $2,270 during the recent pullback.
Similarly, Binance Coin (BNB) has recovered to $550, Solana (SOL) is back at $135, and XRP has climbed close to $0.60 following a 3.8% rise. Other notable performers include TIA and IMX, both up 15%, along with TAO (13.6%), FTM (10%), and UNI (9%).
Liquidations Rise as Market Recovers
The recent price fluctuations have led to a surge in liquidations. Data from CoinGlass reveals that over $123 million worth of positions were liquidated in the past 24 hours, with $47 million coming from Bitcoin short positions. In total, over 42,000 traders were affected by liquidations during the market’s volatile moves.
FOMC Meeting’s Potential Impact on Bitcoin
This week’s FOMC meeting is pivotal for global financial markets, as the Fed is expected to announce its decision on interest rates. In a statement last month, Federal Reserve Chair Jerome Powell hinted that a rate cut was likely, following similar moves by central banks in Europe, the UK, and Canada.
Most analysts are predicting a 0.25% rate reduction, although some experts believe a larger cut of up to 0.75% could be on the table. Such a move could have wide-reaching implications, boosting Bitcoin’s status as a hedge against inflation and economic uncertainty.
Should the Fed lower rates, Bitcoin could see increased demand as investors look for alternative assets amid concerns over inflation and slower economic growth.
Final Thoughts
Bitcoin’s recent rise above $61,000 ahead of the FOMC meeting highlights the close link between macroeconomic policy decisions and the cryptocurrency market. As the Fed’s interest rate decision approaches, traders are closely watching how the outcome might shape Bitcoin’s future price movements and its role in the broader financial landscape.
