Bitcoin gained nearly 1% in the past one day to trade at $116,364 on Wednesday. Meanwhile Ethereum went down by 0.64% in the same period to trade at $ 4,486. According to the analysts, the crypto market is gaining momentum ahead of Fed’s rate cut decision with BTC near $117K and Ethereum rebounding towards $4,500.
With fewer coins available to trade, immediate liquidity is tighter, which could limit short-term selling pressure. On the other hand, Gold’s rally to all-time highs could further strengthen Bitcoin’s momentum. A sustained move above $118,000 would confirm bullish momentum and open the door for Bitcoin to test new highs in the coming weeks,” Patel adds.
At 10:09 AM IST, Bitcoin was trading at $116,345, up by 0.91% over the past 24 hours and up by nearly 4.30% over the past week. Ethereum, meanwhile, was at $4,487, down by 0.57% in the past 24 hours and up by 4.04% over the last seven days.
According to CoinMarketCap, the overall cryptocurrency market capitalisation stood at around $4.03 trillion on Wednesday.
Another analyst also says that BTC is holding near this level ahead of the US Fed decision and a 25 basis point cut looks priced in and also believes that the structure stays constructive so long as $114,000 holds. However, leverage and the FOMC headline make near-term whipsaws
The caveat is liquidity: about $4.5 billion of token unlocks in September and brisk rotation into higher-beta altcoins could stress depth. The next leg higher won’t be about the cut alone, but whether crypto can absorb unlocks and still funnel flows into BTC and ETH,” Subburaj further adds.
