Janice R. Andrews
Bitcoin surged past the $64,000 mark on Tuesday, bolstered by growing expectations of global monetary easing, as China joined other major economies in loosening monetary policy. This rise pushed Bitcoin to its highest level since early August, sparking hopes of a potential breakout above $65,000.
Bitcoin’s Price Momentum
By Tuesday afternoon, Bitcoin had gained nearly 2% over the previous 24 hours, climbing to $64,300. Earlier in the U.S. session, the price briefly dipped below $63,000 following a sharp decline in consumer confidence. However, a mix of favorable economic conditions helped Bitcoin regain its upward momentum, leaving traders eyeing the crucial $65,000 threshold, a level many believe could confirm a strong bullish move.
Global Monetary Easing and Market Impact
China’s overnight decision to ease its monetary policy fueled optimism across global markets. The Shanghai Composite Index surged by over 4%, reflecting investor confidence in China’s economic outlook. In the U.S., expectations for the Federal Reserve to lower its interest rate by 50 basis points at its November meeting increased, with odds rising from 50% to 61%, according to CME FedWatch.
The U.S. consumer confidence index, reported by the Conference Board, showed a sharp drop from 105.6 to 98.7 in September, marking the steepest decline since August 2021. While this data initially dampened market sentiment, it reinforced the likelihood of further monetary easing, which in turn boosted Bitcoin.
Crypto and Gold Shine
Bitcoin, often seen as a hedge against inflation, responded positively to the increased prospects of looser monetary policy globally. A sharp rise in the U.S. M2 money supply in August further contributed to the cryptocurrency’s sustained climb throughout the day. Gold also benefited from the easing outlook, jumping 1.4% to hit a record $2,690 per ounce as investors flocked to safe-haven assets.
Analyst Views on Bitcoin’s Next Move
Despite Bitcoin’s upward trend, some analysts remain cautious. “The $65,000 level is key,” noted market analyst Will Clemente. “A breakout above this threshold would signal a shift in market sentiment and confirm a bullish trend.” While Bitcoin has climbed more than 10% over the past week, its price is still below levels seen earlier in August, leaving the market in a wait-and-see mode.
For now, Bitcoin is riding the wave of global monetary easing, with market participants closely watching for its next significant move. Should it break past $65,000, it could trigger a new bullish phase in the cryptocurrency market.
