While the world is preoccupied with the Federal Reserve's decision to cut interest rates, cryptocurrency markets are in a state of anticipation and division. Will this be the beginning of a new surge for Bitcoin and other digital assets, or are the obstacles still surrounding them?
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📊 The market situation
Bitcoin is trading near $115,356 with strong resistance at $117,000.
The market saw a decline of only 0.25%, reflecting clear caution from traders.
The distant levels of $5200 for Ethereum and $280 for Solana are still out of reach.
Bitcoin exchange-traded funds (ETFs) hold about $46.6 billion under management, indicating that institutions still trust Bitcoin as an investment asset.
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⚖️ The division within the Fed
The recent decision to cut rates was not unanimous; some officials see it as necessary to support the economy, while others fear an inflationary environment that could hinder any long-term upward path.
This division makes the markets walk on shaky ground:
Lowering interest = more liquidity that could flow into crypto.
Continued inflation = a risk that could limit strong rises.
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🔑 Economic drivers
Inflation versus weak employment: Weak data in the labor market, but inflation remains resilient.
Bond yields: A decline of 50 basis points reflects expectations of further rate cuts.
Historically lower borrowing costs → Increased liquidity in the cryptocurrency market.
Increased institutional activity: Blockchain indicators show a growing influx from large investors.
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📈 Trading strategy
All eyes are on $117,000:
Breaking this level could open the door for a rapid rise towards $135,000.
Failure to overcome it means continued volatility and possibly testing lower levels.
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✨ Summary
The Fed's rate cut is like turning on the liquidity tap... but will this liquidity flow strongly into Bitcoin to push it above $117,000, or will inflation bring traders back to caution?
The answer may soon be seen in the upcoming market movement.
