Bitcoin Reclaims $60,000, 74% of Circulating Supply Unmoved, Signaling Long-Term BullishnessFollowing a brief dip last night, Bitcoin staged a strong rebound, breaking through the $60,000 mark around 9 am today and reaching a high of $60,920. As of press time, Bitcoin is trading at $60,815, up 4
Bitcoin Reclaims $60,000, 74% of Circulating Supply Unmoved, Signaling Long-Term Bullishness
Following a brief dip last night, Bitcoin staged a strong rebound, breaking through the $60,000 mark around 9 am today and reaching a high of $60,920. As of press time, Bitcoin is trading at $60,815, up 4.19% in the past 24 hours.
This surge can potentially be attributed to a combination of factors, including the anticipation of interest rate cuts by the Federal Reserve and the robust performance of the US stock market. All four major US stock indices rose last night, with the Dow Jones gaining 236.77 points, the Nasdaq advancing 245.05 points, the S&P 500 climbing 54 points, and the Philadelphia Semiconductor Index increasing by 96.32 points.
What's particularly noteworthy is that Glassnode's HodlWave chart reveals that despite Bitcoin's 21% decline from its all-time high, approximately 74% of Bitcoin has remained unmoved for the majority of 2024. This data underscores the unwavering confidence of long-term investors in Bitcoin, who see it as a store of value and anticipate future price appreciation. This holding trend also leads to a reduction in the supply of Bitcoin available for trading. With increasing demand, this supply-demand imbalance could further propel prices upwards.
Beyond Bitcoin, Ethereum has also shown strong momentum. After hitting a low of $2,563 last night, Ethereum rebounded, surpassing $2,650 and currently trading at $2,677.
It's important to note that despite Bitcoin's breakthrough of $60,000, there haven't been any widespread liquidations in the market. Data from Coinglass indicates that over the past 24 hours, the total cryptocurrency liquidation amount across exchanges was approximately $100 million, with about 40,000 accounts liquidated, signifying a relatively small scale.
Moving forward, the market is poised to witness a series of significant events, warranting close attention from investors. On Wednesday, the minutes from the July Federal Open Market Committee (FOMC) meeting will be released, shedding light on the Federal Reserve's stance regarding potential interest rate cuts in September. If the minutes lean dovish, it would solidify expectations for a September rate cut.
Furthermore, Federal Reserve Chair Jerome Powell is scheduled to deliver a speech on the economic outlook at the Jackson Hole Economic Symposium on August 23rd, 10 am ET (10 pm Taipei time). Given the current crucial juncture ahead of a potential rate cut by the Fed, Powell's remarks will be closely monitored by the market. The monetary policy signals he conveys could have a substantial impact on global financial markets.
The Jackson Hole Economic Symposium, an annual gathering of global central bankers, holds significance as a policy indicator, potentially illuminating the direction of global monetary policy in the face of the current uncertain global economic landscape.
Finally, investors are reminded that the cryptocurrency market is rife with speculation and volatility. Establishing a risk management system independent of price fluctuations is essential for sound investment practices. Prioritizing your own investment philosophy over blind speculation is a crucial attribute of successful investors.
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