Bitcoin dumped hard on Monday but the bulls are back in control now as they propelled a massive rally that resulted in BTC tapping a 3-week peak above $61,000.
This comes at a particularly intriguing time as the US Federal Reserve is expected to cut the key interest rates tomorrow or the next day for the first time in years.
Bitcoin/Price/Chart 17.09.2024. Source: TradingViewThe last time BTC traded this high was in the middle of August, when its price plummeted from over $62,000 to under $59,000 in a few hours.
Today’s price surge came after a painful Monday in which the primary cryptocurrency slipped from about $60,000 to $57,600.
Most altcoins followed BTC on the way up. Ethereum has gained 4% overnight and now trades close to $2,400 after dipping to $2,270 during yesterday’s retracement.
Binance Coin has touched $550 once again, SOL is back at $135, while XRP has neared $0.6 after a 3.8% daily surge.
The biggest price increases from the top 100 alts come from the likes of TIA (15%), IMX (15%), TAO (13.6%), FTM (10%), and UNI (9%).
The total value of liquidated positions has risen to $123 million, according to CoinGlass, with BTC shorts taking the main stage with $47 million. Over 42,000 traders have been wrecked in the past day.
This is a big week for all financial markets as the US Federal Reserve is set to meet on September 18 and 19 to discuss the potential interest rate cuts. Recall that Fed Chair Jerome Powell said last month that the time has come for the US’ central bank to follow the example set by the ECB, the Bank of England, and the Bank of Canada.
Most experts believe the reduction in US interest rates will be by 0.25%, but some have argued for a more aggressive cut of 75 basis points.