Bitcoin’s current recovery: Prices of the digital currency “Bitcoin” witnessed a significant rise of more than 4% during Monday’s trading, making it on the verge of achieving its second gain in the last three days. This rise came as a result of purchasing activity from cheap levels, within an intraday recovery cycle from the lowest level in five months.
Fragile Sentiment: Despite this recovery, sentiment in the crypto market remains largely fragile, due to concerns related to potential sales of the coin by creditors of the collapsed MT Gox exchange. This exchange has begun returning about $8 billion worth of Bitcoin, which raises investors’ concerns about the repercussions of these potential sales on the market.
Effects of US monetary policy: On the other hand, the high probability of cutting US interest rates at least twice before the end of this year increases optimism among investors in the digital currency market. A rate cut may attract more liquidity to this market, as investors look for better returns in a low interest environment. Despite the recent recovery in Bitcoin prices, the outlook remains cautious due to concerns related to MT Gox sales. However, the prospect of a US rate cut may provide additional support to the market by attracting more investments into digital assets.
The long-awaited return of cryptocurrencies to creditors heralds the availability of large supplies of cryptocurrency on the market. The head of research said that the main concerns in the crypto-assets market currently are knowing the timing of the expected large sales of Bitcoin, especially by creditors of the MT Gox platform, in addition to potential sales from the German government.
Futures pricing for the probability of a cut in federal interest rates by about 25 basis points next September has increased from 65% to 74%
Bitcoin rebounds amid fragile sentiment and expectations of a US interest rate cut
Price overview and the price of Bitcoin today: The Bitstamp exchange witnessed an increase in the price of the digital currency “Bitcoin” by about $2,348, equivalent to 4.2%, to reach $58,200, rising from the opening price of today’s trading at $55,852, and it recorded the lowest level at 54,296. dollar.
Sunday’s performance: When prices were settled on Sunday on the Bitstamp exchange, Bitcoin prices lost 4.2%, resuming losses that had stopped the previous day as part of recovery operations from the lowest level in five months at $53,550 per encrypted unit.
Last week’s performance: Bitcoin prices lost about 11% last week, which is the fourth weekly loss in a row, and the largest weekly loss in 2024, specifically since November 2022, due to the acceleration of open selling operations.
Fragile sentiment: Despite this recovery, sentiment in the crypto market remains largely fragile, due to concerns related to possible sales of the currency by creditors of the collapsed MT Gox exchange, which has begun returning about $8 billion worth of Bitcoin, which It raises investors’ concerns about the repercussions of these potential sales on the market.
Effects of US monetary policy: On the other hand, the high probability of cutting US interest rates at least twice before the end of this year increases optimism among investors in the digital currency market. A rate cut may attract more liquidity to this market, as investors look for better returns in a low interest environment. Despite the recent recovery in Bitcoin prices, the outlook remains cautious due to concerns related to MT Gox sales. However, the prospect of a US rate cut may provide additional support to the market by attracting more investments into digital assets.
The recovery of the market value of digital currencies
Cryptocurrency Market Capitalization:
The market capitalization of digital currencies rose by about $35 billion on Monday, reaching a total of $2.233 trillion. This rise came thanks to the current recovery in the prices of Bitcoin, Ethereum, and other major currencies.
MT Gox: MT Gox, a digital platform based in Tokyo, was once the largest Bitcoin exchange in the world. It was hacked in 2011, and filed for bankruptcy in 2014. The reason behind this bankruptcy was the theft of about 850,000 Bitcoins, which led to huge losses for investors.
Cryptocurrency prices rose:
The prices of the digital currency “Bitcoin” witnessed an increase of more than 4% during Monday’s trading, the second gain in the last three days. This recovery came thanks to purchasing activity from cheap levels, as part of a recovery cycle from the lowest level in five months. Market sentiment: Sentiment remains fragile in the crypto market due to concerns related to potential sales of the currency by creditors of the collapsed MT Gox exchange. It is noteworthy that MT Gox has begun returning about $8 billion worth of Bitcoin, which raises investors’ concerns about the impact of these sales on the market.
The impact of US monetary policy:
The possibility of US interest rates being cut at least twice before the end of this year increases the chances of investment funds entering the digital currency market. Rate cuts attract more liquidity to this market, as investors look for better returns in a low interest environment. Despite the recent recovery in the prices of Bitcoin and other cryptocurrencies, the outlook remains cautious due to concerns related to MT Gox sales. However, the prospect of a US rate cut may provide additional support to the market by attracting more investments into digital assets.
Bitcoin Price Analysis (BTCUSD)
The expected scenario:
Bitcoin (BTCUSD) price trades rose strongly to settle above the $56,160.00 level, and we notice that the price recorded a high bottom that may indicate that the price is heading for recovery during the coming period, especially since the Stochastic indicator is providing noticeable positive signals now, but we note that the average Moving 50 constitutes continuous negative pressure that may force the price to decline again. Therefore, the conflict between technical factors makes us stand on the sidelines until we get a clearer signal for the next direction, noting that continuing the rise and breaching $58,660.00 will push the price to achieve further gains and visit the $60,325.00 level as a next positive station, while breaking $56,160.00 will bring back… Activating the negative scenario whose next target reaches $51,990.00.
Expected trading range:
between support $55,000.00 and resistance $60,000.00. Price expectations for today: Neutral
