BTC price is experiencing a boost from market calm over the Federal Reserve’s interest rate policy, with Bitcoin traders anticipating further gains.
Despite new macro data showing resurgent US inflation, Bitcoin has continued to rise and reached new September highs of $26,762.
The US Producer Price Index (PPI) for August came in at 1.6% year-on-year, beating market expectations of 1.3%. However, both traditional markets and the crypto market have rejected the idea that US macro policy will remain restrictive to control inflation.
The European Central Bank (ECB) recently hiked rates by 0.25%, marking their 10th consecutive rate hike and bringing rates to their highest level since 2001. Despite signaling that this could be the last hike in the current cycle, futures markets still indicate a 30% chance of continuation.
Bitcoin traders are hopeful that BTC/USD will reach $27,000 in the next leg up.
Popular traders and analysts have different outlooks on BTC price strength, with some eyeing a break above $26,400 and a target of $27,600, while others caution that a relief rally followed by rejection could weaken support at $26,000.
Summary:
– BTC price is boosted by market calm over the Federal Reserve’s interest rate policy.
– Bitcoin reaches new September highs despite resurgent US inflation.
– The European Central Bank hikes rates, signaling a possible pause in rate hikes.
– Bitcoin traders anticipate further gains and hope for a break above $26,400 to reach $27,600.
– Traders have different outlooks on BTC price strength, with some optimistic and others cautious.
