Bitcoin Price Surges Above $106,000 Amid Geopolitical Easing and Rate Cut Buzz
Bitcoin surged above $106,000 this week, renewing bullish sentiment in the market. Analysts cite various factors influencing this rally:
- Geopolitical tensions easing following a ceasefire announcement between Israel and Iran.
- Increased expectations for US Federal Reserve interest rate cuts, with a projected 18.6% chance by July 30.
- 81.4% of market participants expect current rates to remain unchanged; however, anticipation is growing for a cut by the September FOMC meeting.
The optimism surrounding lower interest rates could fuel Bitcoin's momentum, potentially pushing it toward $110,000. Analyst Justin Bennett indicates that after reclaiming $103,500, Bitcoin may target a new all-time high (ATH), although a minor retracement to around $102,500 is possible.
Regulatory Changes Enhance Bitcoin's Standing
Recent regulatory shifts by the US Federal Reserve are expected to impact Bitcoin and the crypto market positively:
- The FED removed “reputational risk” as a barrier for crypto firms accessing banking services.
- This change ends a significant aspect of Operation Checkpoint 2.0, which limited traditional financial access for many crypto companies.
- The OCC and FDIC have also approved banks' participation in the digital assets market without prior approval.
These developments are likely to enhance institutional involvement in crypto, potentially driving demand and capital inflows into Bitcoin.
