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Bitcoin price soared past the $61,000 mark recently, indicating the regaining confidence of the investors towards the crypto market amid a flurry of positive developments. By Coingape Staff 20 hours ago Updated 18 hours ago
Highlights
- Bitcoin price has crossed the brief $61,000 mark today, reflecting a bullish market sentiment.
- The latest US FOMC Minutes appears to have bolstered the sentiment of the financial market.
- The market anticipates further rally if BTC could continue the rally and hit a crucial resistance.
Bitcoin price has crossed the brief $61,000 mark again, following volatile trading over the past few days. This strong run has fueled optimism among the crypto market enthusiasts, fueling discussions over the potential reason behind the recent surge. Besides, the market is also closely watching if the flagship crypto could hit the $64K resistance next, which could pave the way for further rally.
Here’s a brief report on potential reasons driving the world’s largest cryptocurrency’s uptrend today, August 22.
Why Is Bitcoin Price Up Today?
A flurry of factors could be in play for the recent surge in Bitcoin price. Here we explore some of the top reasons that helped the crypto to cross the $61K mark today.
U.S. Fed Minutes Spark Optimism Over Rate Cuts Ahead
Dovish U.S. Fed Minutes from the July meeting indicated a looming rate cut as soon as September. The latest FOMC minutes hinted that officials show an inclination towards a softer monetary policy.
CME Fed Watch Tool data today illustrated that 71.5% remain in anticipation of a 25 bps rate cut ahead. Meanwhile, 28.5% expect a 50 bps rate cut looming over the horizon.
In addition, the FOMC minutes mirrored growing concerns among govt. officials regarding the nationwide economic terrain. It also hinted that the U.S. central bank is ready to act dovish should market dynamics favor the decision.
Market Dynamics
The BTC fear and greed index sparked additional investor enthusiasm today, recovering from a low of 29 last week to 39 today. As mentioned above, the Bitcoin market appears to be reacting positively to FOMC minutes.
In addition, the derivatives market data spotlights a strong market uptrend for BTC in tandem with today’s price upswing. Coinglass data revealed a 5.59% upswing in the coin’s futures O.I. to $32.28 billion.
Furthermore, the derivatives volume spiked 22.87% to $68.61 billion, per the data. This data solidifies investors’ optimism in the asset, driven by increased market interest.
Bitcoin ETF Inflow Fuels Optimism
US Spot Bitcoin ETF saw continuous inflows in the past five trading days, worth $236.6 million. The latest update from Farside U.K. shows $39.5 million inflows in ETFs as of August 21, with Grayscale leading the pack.
The increase in institutional demand for the crypto’s exchange-traded product in recent days further aligns with today’s Bitcoin price upswing.
Bitcoin Price Today Soars
At press time, BTC price rallied nearly 1% to reach $60,461. Over the last 24 hours, the flagship crypto has touched a high of $61,834.35 and a low of $59,737.90, reflecting the volatile scenario dominating the market. In addition, this pumping movement mirrors a 24-hour trading volume surge of 33% to $34.55 billion.
Bitcoin’s dominance stood at 55.86% today, a slight 0.05% slip in value over the past day. Nonetheless, a recent report by CoinGape revealed that the BTC’s dominance inched closer to a 40-month high, fueling further optimism.
Also, it’s worth mentioning that the ongoing U.S. presidential campaigns have brought crypto under the spotlight. In addition, a recent CryptoQuant report spotlights that short-term investors form crucial resistance at the $64K-$66K level, adding a layer of intrigue to BTC price today.
