“`html
Bitcoin (BTC) is fluctuating closely around $111,000 as markets anticipate the Federal Reserve’s policy announcement on September 17, where a rate decrease is largely anticipated. In spite of softer U.S. employment figures, which generally uplift risk assets, Bitcoin’s value has faced challenges to climb higher.
As of early Monday, Bitcoin had risen 0.56% over 24 hours, trading at $111,800. The subdued price activity followed August’s nonfarm payrolls, which indicated only 22,000 jobs added, significantly below the forecast of 75,000.
The underwhelming data reinforced predictions for monetary loosening, with the CME FedWatch Tool indicating a 100% likelihood of a September decrease and even a 10% probability of a more substantial 50-basis-point cut.
Analysts Divided on Bitcoin (BTC) Prognosis
Rachael Lucas, a market analyst at BTC Markets, remarked that although accommodating Fed forecasts typically bolster Bitcoin, the impact may already be reflected in the price. “Institutional desks are securing profits while ETF inflows remain stagnant, dampening momentum for the time being,” she stated.
Kronos Research CIO Vincent Liu remarked that a rate reduction might not necessarily spark a rally. “A cut indicates economic fragility. Without significant ETF inflows or liquidity growth, $120K remains a formidable obstacle,” he elucidated.
Indeed, ETF inflows have deteriorated. Bitcoin and Ethereum funds encountered reduced inflows in early September compared to peak levels in July and August, indicating a slowdown in institutional interest.
Essential Levels and Upcoming Catalysts
Currently, $110,000 serves as the vital support area. Lucas asserts that resistance at $113,400, $115,400, and $117,100 are critical thresholds that must be surpassed for Bitcoin to reassess the $120K territory.
BTC's price trends upward on the daily chart. Source: BTCUSD on Tradingview
On-chain indicators, like record-high stablecoin supply and decreasing exchange balances, imply potential momentum for a rally. Off-chain elements, including regulatory changes and ETF interest, will also influence market sentiment.
This week’s inflation reports (PPI and CPI) could be crucial. Softer-than-anticipated figures could bolster the argument for multiple rate cuts this year, while hotter data could hinder Bitcoin’s progress.
With Fed policies, inflation patterns, and ETF flows all under scrutiny, Bitcoin is at a pivotal juncture. Whether it breaks through resistance or remains constrained below $120K will rest less on the Fed alone and more on the availability of new liquidity in the market.
Cover image from ChatGPT, BTCUSD chart from Tradingview
Editorial Process for bitcoinist focuses on delivering extensively researched, precise, and impartial material. We adhere to rigorous sourcing standards, and every page is subject to careful scrutiny by our team of leading technology experts and seasoned editors. This practice guarantees the integrity, relevance, and worth of our content for our audience.
Source link
“`
