U.Today – As markets prepare for today’s key Federal Reserve interest rate decision, all eyes are on the currency, which recently rose above $76,000.
The co-founders of Glassnode, who utilize the name “Negentropic” on X (formerly Twitter), are closely following the cryptocurrency’s development, suggesting that Bitcoin may be ready for its next major move.
Bitcoin recently breached $76,000, hitting a high of $76,509 on Wednesday, setting a modern all-time high. The rally coincides with modern all-time highs for customary market indexes such as the Nasdaq and S&P 500.
An fascinating phenomenon, however, is the weakening of the correlation between Bitcoin and these indices. This separation raises the question: Could Bitcoin rise even higher independently of customary markets?
Negentropic indicated that with the upcoming interest rate decision and subsequent speech by Fed Chair Jerome Powell, this could be Bitcoin’s first real test of its bullish trend. But will it continue to grow regardless of customary markets?
The answers to these questions remain unknown, but the market is closely watching for clues to predict Bitcoin’s next large move. At the time of writing, BTC is up 1.72% in the last 24 hours to $74,900, up 6% on the week.
Market Prepares for Fed Rate Cut; Powell’s speech
On September 18, the Fed began the cycle of easing monetary policy by cutting interest rates by half a percentage point.
The Federal Reserve is generally expected to cut interest rates again, with financial markets pricing in a quarter-percentage point decline as almost certain.
In featherlight of this, investors are eagerly awaiting the Fed’s interest rate decision at today’s Thursday policy meeting. The decision will be followed by comments from Fed Chair Jerome Powell, which could provide insight into the Fed’s economic policy and interest rate expectations in the coming months.
Traders were the last to price in a 99% chance of a quarter-percentage-point rate cut, based on CME Group’s (NASDAQ:) FedWatch tool. This came after the Fed cut interest rates by 50 basis points in September.
