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Fed rate cuts have boosted bitcoin investor confidence, with whales buying up to 1.6 billion btc since the macro decision. With such a bullish outlook, there is a chance that the flagship cryptocurrency could bitcoin-liquidity-resting-above-70000-as-coinbase-metrics-reveal-strong-demand/” rel=”nofollow”>will soon reach $70,000.
Fed rate cuts spark buying spree among bitcoin whales
The Federal Reserve's rate cuts have sparked a wave of buying among bitcoin-whales-1-7-billion-in-btc-flow-out-exchange/” rel=”nofollow”>bitcoin Whales. These investors bought more than 1.6 billion bitcoins after the macro decision on September 18. Data from the market intelligence platform In the block shows that these whales have purchased 25,510 btc since September 19.
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This bitcoin-accumulation-returning-glassnode-report/” rel=”nofollow”>accumulation trend It is not surprising as the 50 basis point interest rate cut has provided a bullish outlook for risk assets, including bitcoin. The flagship cryptocurrency is expected to see a significant price increase as more liquidity will flow into its ecosystem as investors are able to access more money following the Federal Reserve’s quantitative easing (QE).
As bitcoin is predicted to experience massive bullish moves, it is possible that it will hit $70,000 very soon. The flagship cryptocurrency has already bitcoin-price-continues-recovery-breaks-above-60000/” rel=”nofollow”>It overturned the $60,000 price level as support following the Fed rate cuts and remains comfortably above that level. As expected, more liquidity is already flowing into the btc ecosystem, as evidenced by the $1.6 billion purchase by these whales.
Therefore, it shouldn't be long before the cryptocurrency reaches the $70,000 price level. The fact that bitcoin is reaching this level is significant as it could pave the way for btc to reach a new all-time high. bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>new all-time high (ATH)The $70,000 price level has acted as a strong resistance since the cryptocurrency fell below this level after rising to its current ATH of $73,000 in early March.
However, bitcoin could easily overcome this resistance this time, considering that it has more bullish momentum thanks to the Fed rate cuts.
History could repeat itself
Aside from the Fed rate cuts, bitcoin’s historical trend provides a bullish outlook for the flagship cryptocurrency and suggests that a surge to $70,000 should occur fairly soon. bitcoin-dominance-an-end-altcoin-season-is-upon-us/” rel=”nofollow”>Cryptocurrency analyst Ali Martinez It was recently noted that bitcoin enjoyed a 61% and 171% price increase in 2016 and 2020, respectively. Both years were bitcoin-halving-2024-complete-what-expect/” rel=”nofollow”>years of halving.
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The analyst further revealed that bitcoin’s price action this year mirrors 2016 and 2020. As such, history could repeat itself and the flagship cryptocurrency could enjoy similar gains as previous years.
Besides, Fourth quarter of each year Historically, bitcoin enjoys its biggest gains. Therefore, btc should see significant price gains heading into the final quarter of this year. Meanwhile, the post-halving rally is also just around the corner, which could boost this trend. bitcoin-must-hold-above-70000-for-bullish-momentum/” rel=”nofollow”>The price rises to $70,000.
At the time of writing, bitcoin is trading around $63,900, up more than 1% in the past 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
