u.today
As markets brace for today’s crucial Federal Reserve interest rate decision, all eyes are on Bitcoin, which has recently surged above $76,000.
Glassnode cofounders, who go by "Negentropic" on X (formerly Twitter), have been closely tracking the cryptocurrency's progress, suggesting that Bitcoin could be poised for another major move.
Bitcoin's Next Big Move?📈
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) November 7, 2024
While the Nasdaq and S&P 500 have hit new all-time highs, Bitcoin has surged above $76k, breaking its own threshold. At the same time, the correlation between Bitcoin and the indices has weakened.
Could this decoupling allow Bitcoin to push even… pic.twitter.com/pISBrywOTD
Bitcoin recently surpassed $76,000, reaching highs of $76,509 on Wednesday, setting a new all-time high. The rise coincides with fresh all-time highs for traditional market indices like the Nasdaq and S&P 500.
However, an interesting development is the weakening correlation between Bitcoin and these indices. This decoupling raises the question: Could Bitcoin push even higher independently of traditional markets?
Negentropic indicated that with the impending interest rate decision and Fed Chair Jerome Powell's speech afterward, this could be Bitcoin's first real test for its bullish trend. But will it continue to rise independently of traditional markets?
The answers to these questions remain unknown, but the market closely watches for hints to predict Bitcoin's next big move. At the time of writing, BTC was up 1.72% in the last 24 hours to $74,900 and up 6% weekly.
Market braces for Fed rate cut; Powell speech
On Sept. 18, the Fed began the policy easing cycle with a half-percentage-point rate drop.
The Federal Reserve is generally expected to cut interest rates again, with financial markets pricing a quarter-point drop as a near certainty.
In light of this, investors are closely awaiting the Fed's interest rate decision during its policy meeting today Thursday. The decision will be followed by comments from Fed Chair Jerome Powell, which may provide insight into the Fed's economic and interest rate expectations for the coming months.
Traders were last pricing in a 99% chance of a quarter-point cut in interest rates, based on CME Group's FedWatch tool. This comes following the Fed's 50 basis point rate cut in September.