Bitcoin prices rose during trading on Tuesday, extending their gains for the second day in a row, recording their highest level in a week, after crossing the psychological barrier of $60,000 again.
The weaker yield on the US 10-year Treasury bond improves the risk appetite in the markets, as the possibility of a Federal Reserve interest rate cut in September is fully priced in.
Markets are awaiting strong evidence this week on the size of US interest rate cuts this year, particularly the minutes of the last Federal Reserve meeting and Jerome Powell’s comments at the Jackson Hole Forum.
Price overview
Bitcoin price today: On the Bitstamp exchange, the price of the digital currency Bitcoin rose by about ($1,962), equivalent to 3.3%, to ($61,424), the highest in a week, from the opening price of today’s trading at ($59,462), and recorded its lowest level at ($59,396).
At Monday's settlement on the Bitstamp exchange, bitcoin prices were up 1.85%, their third gain in the past four days, amid a rally in most global stock markets.
Cryptocurrency market cap
The market cap of cryptocurrencies rose more than $65 billion on Tuesday to a total of $2.248 trillion, amid the current surge in the prices of Bitcoin and Ethereum.
US bond yield
The yield on the 10-year U.S. Treasury note fell about 0.25 percentage point on Tuesday, extending its losses for the third straight session, which improves risk appetite in the markets.
This development comes in the US bond market, where the market is still fully pricing in the possibility of the Federal Reserve cutting US interest rates by about 25 basis points next September.
US interest
According to the CME Group's FedWatch tool: The probability of a 50 basis point cut in US interest rates at the September meeting is priced at 25%, and the probability of a 25 basis point cut is priced at 75%.
The market is awaiting the release of the minutes of the last meeting of the Federal Reserve, scheduled for release tomorrow, Wednesday, as it is expected to include more evidence about possible cuts in US interest rates.
Federal Reserve Chairman Jerome Powell speaks at the Jackson Hole Forum on Friday.
Crypto experts say any sign of a US interest rate cut boosts the appeal of riskier assets, potentially increasing the inflow of investment funds into the cryptocurrency market.
Bitcoin Performance Predictions
Here at FX News Today, we expect Bitcoin to continue moving in the positive zone, targeting trading above $65,000, especially if the Fed’s comments are less aggressive than expected in the markets.
Artistic view
Bitcoin (BTCUSD) Price Starts with Strong Positivity – Today's Forecast 08-20-2024
