- Quinn Thompson predicts Bitcoin could hit a new all-time high by mid-August, influenced by potential Federal Reserve cuts.
- Market anticipates Fed rate cut in September, with an 87% probability, potentially boosting Bitcoin and other risk assets.
As the cryptocurrency market continues to recover, Bitcoin has retested the $67,000 mark after a slight dip below $64,000 on July 25th. This movement reflects Bitcoin’s resilience, even as the Mt. Gox estate continues its distributions.
According to analysis carried out by ETHNews, the recent price behavior of Bitcoin might soon lead it to retest its all-time high, with a growing consensus among market analysts predicting this milestone could be reached as early as next month.
Quinn Thompson, founder of Lekker Capital, has projected that Bitcoin could reach a new all-time high by mid-August.
I expect #Bitcoin all-time highs by mid-August. The Fed is about to ease into bottomed inflation and it will show up in the price of Oil, Gold and crypto.
— Quinn Thompson (@qthomp) July 25, 2024
This prediction is based on anticipated economic measures by the Federal Reserve, including a potential rate cut aimed at easing the current economic conditions.
“The Fed’s upcoming policy adjustments, expected to address the bottomed inflation, could positively impact various asset classes including oil, gold, and cryptocurrencies,” Thompson explained.
The general market sentiment is buoyed by expectations of a Federal Reserve rate cut in September, which, according to the Fed Watch Tool, has an 87% probability as perceived by interest traders. This anticipated cut is expected to rally risk assets like Bitcoin, potentially pricing in the benefits of this policy shift ahead of its implementation.
Moreover, Bitcoin has managed well recent challenges such as supply overhangs from Mt. Gox repayments. Market analysts from DeFiSquared noted that despite distributions on platforms like Bitstamp and Kraken, there was no significant impact on Bitcoin’s price or trading volume.
“The market has absorbed these events without any negative price action, and with FTX planning to return $16 billion to crypto natives, we might see a new high sooner than most expect,” they stated.
Additionally, while the U.S. government has recently liquidated some of its Bitcoin holdings, the remaining stash, worth approximately $14.3 billion, continues to be a factor to watch with the upcoming elections.
Despite this, the derivatives market sentiment remains positive, indicating a strong buying interest that could drive Bitcoin’s price to new heights, targeting the critical resistance near $68,900.
