Crypto investors closely monitor the traditional market's developments, notably American stock index futures. This week, these derivatives reached historic highs, sparking hopes for a potential new all-time high for Bitcoin.
Last Thursday, futures contracts on the S&P 500 index crossed a new symbolic threshold, surpassing 6,145 points. At the same time, Nasdaq Composite futures contracts also reached a record level at 20,180 points. This momentum is driven by growing expectations of a Federal Reserve interest rate cut as early as next July.
Cryptocurrency analysts see this upward trend in traditional markets as a positive sign for Bitcoin. Nick Ruck, Director at LVRG Research, believes that if the Fed does cut its rates in the coming months, it could enable Bitcoin to break through its current resistance level of $109,000 and enter a new price discovery phase.
Jeff Mei, COO of the BTSE exchange platform, adds: “Conditions are ripe for Bitcoin to surpass its previous all-time high of around $112,000, especially as tensions between Iran and Israel appear to have eased.”
Despite these optimistic prospects, Bitcoin still struggles to sustainably surpass the $108,000 mark. Its repeated attempts this week have resulted in failures, bringing it down to $107,400.
Observers also note a certain caution creeping in among Fed policymakers, tempering the prevailing euphoria. Moreover, traders are exerting downward pressure, which helps stabilize prices.
Market attention is now turning to the release of the PCE report, the Fed’s preferred indicator to measure inflation. Its release could trigger a new wave of volatility.
In the end, if US futures contracts and Fed monetary expectations continue to favor risky assets like Bitcoin, the stars may align to propel the leading cryptocurrency to new all-time highs in the coming months. Crypto investors will passionately follow this exciting development.
Planning to invest in Bitcoin (BTC) through Bybit? Here is a simple guide to make your purchase with peace of mind:
Remember to analyze the market before investing to optimize your decisions and mitigate risks.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
