The asset held above key short-term support at $63K, but will it continue to hold?and US stocks dropped during Monday’s, 30th September, intra-day trading session. BTC dropped 3% and hit $63000, which coincided with Fed chair Jerome Powell’s remarks on rate cut expectations.
During his Nashville address at the National Association for Business Economics conference, he showed no preference for a faster or slower pace of interest rate reduction.“If the economy evolves as expected, that would be two more cuts by year’s end, for a total reduction of half a percentage point more.”As of last week, the market expected an extra aggressive 50 bps cut in November, similar to the move seen in September.On the contrary, the chances of a 0.50% cut dropped to 38.
That being said, the $63K level could be crucial support in the short term. As noted by CryptoQuant, the level was the short-term holders’ realized price and has acted as support since mid-September.Another potential positivewas an increasing signal towards an end to the Fed’s quantitative tightening as more institutions tap into the Fed’s Repo facility. This could inject more Fed liquidity and boost risk assets.
However, increasing geopolitical tension in the Middle East could also challenge BTC’s Uptober expectations and is worth tracking.