Bitcoin shows signs of relief rally amid calls for emergency rate cuts and technical indicators
Bitcoin (BTC) price recovers above $55,00 on Tuesday after the sharp decline seen since the end of July. Economist Jeremy Siegel has called for emergency interest rate cuts after the recent market crash. At the same time, Arkham Intelligence data reveals that major investors like BlackRock, MicroStrategy, Grayscale, and Fidelity retained their Bitcoin holdings during the sell-off. Additionally, on-chain data shows short-term investors are selling in a panic, indicating a possible slight recovery before the downtrend resumes.
Jeremy Siegel, a finance professor and chief economist, has urged an emergency 75 basis point cut in the Fed funds interest rate in response to the recent market downturn, stressing the need for immediate action and proposing an additional cut next month to better align with the Federal Reserve's (Fed) inflation and employment targets, while criticizing the Fed's slow response as a major policy misstep that could exacerbate negative market reactions.
AAVE gears up for 15% rally after generating $6 million in revenue from crypto market sell-off
AAVE generated over $6 million in revenue in Monday’s crypto market sell-off. The decentralized protocol held steady even as the price of cryptocurrencies in the top 30 plummeted. Stani Kulechov, founder of AAVE, notes that the project secured over $21 billion in value during the carnage in the crypto markets on Monday.
AAVE trades above $99 at the time of writing on Tuesday and secures $10.905 billion, according to DeFi Llama data. On Monday, Stani Kulechov commented on AAVE’s performance in the recent crypto market correction that served as a stress test for the DeFi protocol. The project withstood the stress across 14 active markets in Layer 1 and Layer 2 chains while securing over $21 billion in value.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin poised for a drop after falling below the $52,000 level
Bitcoin (BTC) and Ethereum (ETH) retested their major support levels on Monday; a break below these levels could signal a bearish trend ahead, while Ripple (XRP) closed below its key support level, indicating a likely bearish outlook in the coming days.
Bitcoin's price fell below the ascending trendline (drawn by joining multiple swing high levels from July 5) on August 2, leading to a 5.6% decline over the next two days. As of Monday, it is trading 6% lower at $54,585, having tested the daily support level at $52,266.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin drops below $59K following US government's $591 million Silk Road BTC transfer
Bitcoin briefly dropped below $59K on Wednesday following news that the US government had moved 10,000 BTC to Coinbase Prime. On-chain data also shows a trend change in Bitcoin's price correlation to the BTCE fund reserves.
Ethereum ETF inflows and low CPI could help ETH stage rally amid Jump Crypto headwind
Ethereum is down 1.7% on Wednesday as low Consumer Price Index inflation data and rising ETH ETF inflows hint that a rally may be imminent. However, a key trendline suggests ETH may repeat history.
PEPE could decline further as long-term holders continue to shed holdings
PEPE is down nearly 2% on Wednesday following key insights that long-term holders have been consistently booking profits since March. The move appears to be creating a head-and-shoulder pattern on the daily chart for PEPE, which can trigger a heavy correction.
Coinbase set to launch tokenized Bitcoin on Base network
Coinbase revealed its plans to launch a wrapped Bitcoin token with the ticker cbBTC on its Base network in an X post on Wednesday. The announcement comes after Bitgo announced its plans to move wBTC ownership to Bit Global, stirring massive criticism.
Bitcoin: Can BTC bounce back from recent market crash?
Bitcoin (BTC) trades above $60,000 on Friday after a 7.2% decline and a dip below the $50,000 level earlier in the week, following a test of its daily support level at around $49,900 on Monday.