Bitcoin price shows strength ahead of a key Federal Reserve monetary policy decision on Sept. 18, but data suggests the momentum may not last.
Bitcoin (BTC) price gained 6.4% in less than 12 hours on Sept. 17, breaking above $61,000 for the first time in three weeks. However, despite this price rally, derivatives markets indicate that sentiment did not improve, leaving Bitcoin bulls concerned. Is Bitcoin more likely to hold $60,000 or slip back into the $58,000 range?
Bitcoin's price movement mirrored the S&P 500 index, which reached an all-time high after macroeconomic data increased the probability of a 0.50% interest rate cut by the US Federal Reserve on Sept. 18. US retail sales rose 0.1% month-over-month in August, according to Census Bureau data. Meanwhile, industrial production grew by 0.8% in the same month, driven primarily by a recovery in motor vehicles and parts.
Previously, investors were concerned that the US economy was slipping into a recession, particularly in the consumer sector due to rising financing costs. Some analysts argue that the stock market has entered a bubble phase, fueled by inflated valuations of tech companies and excessive leverage in the financial system. Cracks have already appeared in the commercial real estate market. As a result, the recent uptick in economic activity has helped reduce the risks of a stock market correction.
