Originally published on: July 22, 2024
Bitcoin is eyeing a surge to $68,000 as the latest move by China to slash key interest rates has bolstered bullish sentiment in the crypto market.
Bitcoin’s price, currently at $65,622.76, is showing signs of aiming toward new highs, with data from Cointelegraph Markets Pro and TradingView indicating a bullish trajectory after a slight drop below $67,000 earlier in the day.
Chinese Rate Cut Sparks Optimism
Amidst mixed performances in Asian stock markets, China’s unexpected decision to reduce several key interest rates has injected optimism into the crypto space. The People’s Bank of China announced a cut in the seven-day reverse repo rate by 0.1% to 1.7%, with the one-year and five-year loan prime rates following suit.
Market analyst Larry Hu pointed to a potential slowdown in growth momentum as the driving force behind China’s rate cut, aiming to meet the growth targets set for the year.
Global Interest Rates Impacting Crypto
Lowering global interest rates are pivotal for the performance of risk assets like cryptocurrencies. While the US is yet to initiate a rate-cut cycle, market expectations suggest a shift may begin in September, following in the footsteps of China and Europe.
Bitcoin at the Cusp of Breaking All-Time Highs
Bitcoin is standing on the verge of surpassing its previous all-time high, with the $69,000 level posing as the final hurdle before retesting record levels set in late 2021.
Renowned traders and analysts anticipate a further rise in Bitcoin’s price, with projections indicating the possibility of hitting new peaks within the coming months. Rekt Capital, a prominent market commentator, outlined the potential for Bitcoin to reach new all-time highs by September.
Key Levels to Watch
Traders are closely monitoring crucial support levels, with $65,000 identified as a critical threshold to maintain upward momentum. Should Bitcoin dip to around $61,000, it is seen as the next key level to defend before any potential trend continuation.
Looking Ahead
As the crypto market gears up for possible new record highs, experts suggest caution and conducting thorough research before making investment decisions. While predictions point to a bullish trend ahead, it’s essential for investors to exercise diligence in navigating the volatile crypto landscape.
