Bitcoin Price Targets $60K with Potential for Further Growth, Analyst Suggests
Cryptocurrencies saw a surge in value on Friday, with bitcoin (BTC) edging close to the $60,000 mark, driven by robust gains in traditional markets. BTC experienced a brief dip to $57,600 earlier in the day following MicroStrategy’s announcement of acquiring 18,300 BTC for $1.1 billion. However, the leading crypto swiftly recovered, closing the session with a 2.2% increase at $59,700.
Meanwhile, Ethereum’s ether (ETH) reclaimed the $2,400 level, marking a 2.7% rise during the same period. Notably, Ethereum’s fee revenues surged nearly 60% in the past week, reflecting increased blockchain activity, as highlighted by analytics firm IntoTheBlock.
The CoinDesk 20 Index, a broad-market benchmark, advanced by 2.5%, led by Polygon’s native crypto, MATIC, which recorded double-digit gains. This surge coincided with a positive trend in U.S. stocks, with the S&P 500 inching closer to its July record high just before the market close. Gold prices also hit a historic high of $2,600 per ounce, supported by a weakening U.S. dollar against major currencies.
Bitcoin’s rally appears to have more room for growth, according to trader and analyst Bob Loukas, who emphasized the significance of daily cycles analysis in predicting asset movements. A chart shared on X indicates that bitcoin likely hit a local bottom below $53,000 on September 6 and is currently in its 7th day of a new cycle, suggesting potential for higher highs before a reversal.
Looking ahead, market watchers are keen on the Federal Open Market Committee (FOMC) meeting next week, where the Federal Reserve is expected to announce its first interest rate cut since 2020. Speculation surrounds the size of the cut, with probabilities evenly split between a 25 basis point and a 50 bps reduction, as indicated by the CME FedWatch Tool.
Despite the anticipated accommodative monetary policy, concerns about a looming recession persist, according to a report from crypto investment firm Ryze Labs. The report underscores the pivotal role of the U.S. economy in determining the trajectory of risk assets, suggesting that market performance hinges on economic resilience in the face of potential downturns.
In conclusion, the cryptocurrency market’s recent uptrend, coupled with evolving macroeconomic factors, sets the stage for a dynamic and potentially volatile period ahead.
