Hold onto your hats, crypto enthusiasts! Bitcoin is making waves again, hitting its highest point since late August, all thanks to the United States Federal Reserve slicing interest rates by 0.5%.
In just the past 12 hours, Bitcoin's price has surged nearly 5%, smashing through the $62,000 barrier for the first time in over three weeks. From a low of $59,200, it rocketed up to $62,600 before taking a tiny breather during the Wednesday morning Asian trading session.
Crypto analyst ‘Nebraskangooner' has called this a breakout and is eyeing the next resistance zone at $63,500 to $64,000. That's where Bitcoin last tried to break through but couldn't quite make it on August 25.
Meanwhile, Reflexivity Research's Will Clemente is setting his sights even higher, targeting $65,000 to confirm this breakout and kickstart a larger upward move. He's pumped about the recent surge and is keeping his fingers crossed for a higher high at $65k.
Analyst Willy Woo is also chiming in, noting that there's a lot of Bitcoin being scooped up. He mentions that exchange inventories for derivatives are flat but could shift quickly if a short squeeze happens. Woo is cautiously optimistic, seeing the potential for a bullish pattern forming.
Trader ‘Bluntz' has a bold prediction for his 274,000 followers, suggesting that markets are on the brink of a major rip, possibly the last big leg up before hitting a new all-time high. He's encouraging everyone to seize the moment and make the most of the next 3-4 months.
While this post-rate cut rally was somewhat anticipated, the big question is whether the crypto market can keep this momentum rolling through the weekend.
Economist Alex Krüger points out that historically, when the Fed starts its easing cycle without a recession, equities tend to rally by 10% within six months. But if there's a recession, they drop by 12%. He sees this as bullish for Bitcoin too, though its path will heavily depend on the upcoming election results.
The total market cap has surged by $100 billion since the Fed's rate cut decision, now standing at $2.24 trillion, the highest since late August. Ethereum has also bounced back, reclaiming the $2,400 mark with a 4.1% gain, though it's still facing some resistance just above $2,500.
Altcoins are enjoying the party too, with Solana up 6%, Avalanche jumping 9%, Bitcoin Cash gaining 10%, and Near Protocol leading the pack with a 12% spike for the day.
