Cryptocurrency Resurgence: Possible Bitcoin Recuperation in Relation to S&P 500 Profits Following Federal Interest Rate Decrease?
The Federal Reserve's recent interest rate cut has sent ripples through the financial world, with the S&P 500 reaching all-time highs above 6,600. In the crypto sphere, the rate cut seems to have sparked a rally, with Bitcoin (BTC) currently trading 1% up at $117,531.
According to market researchers at The Kobeisse Letter, when the Fed cuts rates within 2% of all-time highs, the S&P 500 has risen an average of +14% in 12 months. While specific US stock market analysts have not been found to have predicted Bitcoin's development following the rate cut on September 17, 2022, the trend suggests a potential positive outlook for the digital currency.
Bitcoin's rally has stalled in the last few weeks, with the price continuing to flirt with the $112,000-$115,000 range. Crypto analyst Ali Martinez identified $115,440 as a key support level for Bitcoin. Holding this level could set the stage for a move toward $137,300, according to Martinez, while a breakdown below this level may open the downside to $93,600.
The broader crypto market, including Ethereum (ETH), Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), is also rallying. Each of these altcoins has gained between 3-5% in the last 24 hours. Notably, BNB Coin has hit new all-time highs, aiming for a $1000 breakout.
Ripple's XRP is up by 3% today, while Ethereum's open interest (OI) has been climbing, indicating renewed leveraged activity and increasing demand for directional exposure in the altcoin. Blockchain analytics firm Glassnode reported similar trends for Ethereum's competitors, Ripple and Binance Coin.
The US SEC's decision to allow a proposed rule change to adopt generic listing standards for crypto ETFs could potentially lead to the approval of ETFs around Solana, Cardano, and Dogecoin. This decision could usher in a new wave of approval for ETFs in the crypto market, potentially providing a fresh liquidity influx and further fueling the rally.
Investors are still in a wait-and-watch mode as BTC volatility subsides. There are also rumors of CZ's return to Binance, which could further impact the crypto market. As the situation unfolds, the crypto market continues to demonstrate resilience and potential for growth.
