Cash News
Bitcoin
Bitcoin
Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and “uncover blockchain blockbusters poised for 1,000% plus gains” in the aftermath of bitcoin’s halving earthquake!
The bitcoin price has climbed back toward $60,000 per bitcoin after dropping toward $50,000 due to “extreme fear” taking hold of the market.
Now, as traders search for signs the market could be headed for recovery, analysts with the world’s largest asset manager and bitcoin spot exchange-traded fund (ETF) issuer BlackRock have warned they see more “volatility flare-ups ahead,” and predicted the Fed won’t cut rates as quickly as markets expect.
Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run
BlackRock’s chief executive Larry Fink has led a bitcoin revolution on Wall Street this year but … [+]
“We see multiple factors driving market volatility: resurgent recession fears due to some softer economic data, pre-U.S. election jitters and profit-taking as investors make room for new stock issues,” BlackRock Investment Institute strategists led by Jean Boivin wrote in a note, adding: “We don’t see the Federal Reserve cutting policy rates as sharply as markets expect.”
The bitcoin price surged higher yesterday along with the stock market as traders await more inflation data this week that will likely set up the Federal Reserve for an either 25 basis point or 50 basis point interest rate cut next week.
The Fed is widely expected to cut interest rates when officials gather for the two-day policy meeting on September 17, its first post-pandemic era cut that could herald a new cycle of cheaper borrowing and fresh liquidity.
Last week, a weaker than expected U.S. job report sparked a bitcoin price crash, with the slowing jobs market fueling fears the Federal Reserve has waited too long to cut interest rates and could have tipped the economy into recession.
“Even as inflation is falling toward the Fed’s target in the near term, higher inflation over the medium term will limit how far the Fed can cut rates, we think,” Boivin wrote. “Growth jitters and cooling inflation have driven 10-year yields to 15-month lows as investors have priced in more than 100 basis points of cuts by year-end and about 240 basis points of cuts over the next 12 months—implying a Fed response to a recession.”
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
The bitcoin price has dropped back from its recent all-time high of $70,000 per bitcoin, fanning … [+]
Meanwhile, analysts with broker Bernstein warned the bitcoin price could crash almost 50% to around $30,000 if vice president and 2024 Democratic Party nominee Kamala Harris wins November’s U.S. presidential election.
However, they also think that a victory for former U.S. president and Republican nominee Donald Trump could mean the bitcoin price surges to $90,000 thanks to Trump’s recent embrace of the technology.
“After the last three years of regulatory purge, a positive crypto regulatory policy can spur innovation again and bring the users back to financial products on the blockchain,” analysts led by Gautam Chhugani wrote in a note seen by Coindeskadding: “Elections remain hard to call, but if you are long crypto here, you are likely taking a Trump trade.”
The crypto-based prediction platform Polymarket currently favors Trump retaking the White House, with 52% of users betting he’ll win.
“Broader factors, such as changes in the Federal Reserve’s monetary policy or ETF flows, will also continue to influence market sentiment leading up to the election,” Yongjin Kim, the chief executive of crypto trading platform Flipster, wrote in emailed comments.