Bitcoin Surges to 60k with Celestia Jasmy Pepe and MOTHER Iggy as Key Players
Cryptocurrencies are experiencing positive growth on Saturday as traders anticipate a potential interest rate cut by the Federal Reserve next week. Bitcoin is also testing the crucial resistance point at $60,000.
Bitcoin’s price reached $60,000, while Celestia (TIA) increased by 12% to $4.50, reaching a high of $4.59, the highest it has been since August 31. Popcat (POPCAT) also surged to $0.80, which is 71% above its lowest level this month. Pepe (PEPE), the popular meme coin, saw a 6% rise, and JasmyCoin (JASMY) experienced a 5% increase.
The market cap of all coins tracked by CoinGecko exceeded $2.20 trillion during this recovery. This positive trend coincided with the performance of other assets, such as gold, which reached a record high of $2,580. American equities also continued to rebound, with the Dow Jones rising by 0.80%, and the S&P 500 and Nasdaq 100 indices increasing by 0.55% and 0.60%, respectively.
This performance followed the release of encouraging inflation data by the US on Wednesday, which raised the likelihood of the Federal Reserve starting to cut interest rates on September 18. The data revealed that the headline consumer inflation dropped to 2.5%, the lowest level in over two years.
Cryptocurrencies are expected to perform well if the Federal Reserve cuts rates, as they did in 2020 and 2021. Conversely, they experienced a crash when interest rates spiked in 2022.
Bitcoin’s rise was further fueled by MicroStrategy’s announcement that it had acquired an additional 18,300 coins worth $1.1 billion. MicroStrategy is currently one of the largest corporate holders of Bitcoins, with 244,800 in its portfolio. Additionally, signs of whale and shark accumulation of Bitcoin also contributed to its upward movement. The volume of Bitcoin in exchanges has been decreasing, reaching its lowest level in years.
On the other hand, stablecoin holdings by smart money continued to decline, as shown by data from Nansen. The chart indicates that these holdings peaked in May 2022 when Terra and its ecosystem experienced a crash, leading to a risk-off sentiment. It then reached another peak in November 2022 after FTX collapsed.
However, both Bitcoin and altcoins like Celestia, Jasmy, and Pepe face the risk of Bitcoin forming a death cross, as the spread between the 50-day and 200-day moving averages has narrowed. A death cross may lead to further downside, as seen with Ethereum, which dropped by 15% after forming the pattern in August.
