Bitcoin (BTC) slipped further on Thursday, extending its recent decline despite a rally in Wall Street triggered by the Federal Reserve hinting at a potential September interest rate cut. Despite the positive news, investor sentiment towards crypto markets remained cautious due to fears of a potential US government sale of its Bitcoin holdings and uncertainties surrounding the crypto-positive promises of Republican presidential nominee Donald Trump.
The Fed’s indication of a potential rate cut was overshadowed by geopolitical tensions in the Middle East, following the killing of a Hamas leader in Iran, and a surge in the Japanese Yen after the Bank of Japan raised interest rates. These developments contributed to a general risk-off sentiment in global markets.
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Despite the bearish market conditions, large Bitcoin holders continued to increase their holdings in July, with the fastest rate of accumulation since October 2014. This suggests confidence in the cryptocurrency’s long-term prospects.
While the crypto market experienced a broad decline, with XRP losing 5.7%, Ether falling 3.6%, and Solana and Cardano dropping by 6% and 2.5%, respectively, analysts remain cautiously optimistic about Bitcoin’s future price movements. ING analysts believe that the Fed’s rate cut in September could benefit crypto markets.