Fed Rates Down and a Friendly SEC: Crypto Summer in Autumn?
Bitcoin Trades Above Crucial Level. Flipping It Into Support Means New ATH Incoming
The Fed decided to cut the interest rate by 25 bps on Wednesday, but the market already knew that, and Bitcoin dropped slightly immediately after the release. It was probably a case of “buy the rumor, sell the news”, when markets move more in anticipation of an event rather than the official announcement.
Since there was a 99.9% probability of a rate cut, investors focused more on Powell’s tone and the implied number of future rate cuts. The Fed Chair confirmed during the press conference that the weakness in the labor market played a big role in the decision and signaled that two more cuts are coming this year.
After an initial dip from $116,200 to around $114,850, Bitcoin recovered and traded at $117,900 in the aftermath of the rate cut and press conference. Additional rate cuts will favor Bitcoin and altcoins, as investors’ appetite for risk increases. We are still not in full “risk on” mode, but we’re getting there.
SEC’s Major Overhaul of the ETF Listing Process
In a much-anticipated and applauded move, the Securities and Exchange Commission (SEC) finally opened the door for a faster ETF approval process. Until now, the time it took the SEC to approve an ETF filing was 240 days or even longer. The new streamlined process allows an ETF to be launched within 75 days of filing.
According to SEC Chair Paul Atkins, the new listing rules are a commitment to eliminating barriers and, at the same time, to innovate without compromising investor protection. This marks a major step toward mainstream crypto adoption and a near-complete reversal from the Biden administration era, when most initiatives faced skepticism. It also proves that the Trump administration is committed to crypto innovation.
Chart Analysis – BTC/USD
Bitcoin is currently changing hands at $117,130 and looks to be headed higher. The SEC’s latest ETF listing rules do not affect Bitcoin directly because there are enough ETFs already active (although other companies are likely to step up). However, these rules will provide tailwinds for the crypto market as a whole, and BTC is the trailblazer, so it will be positively affected as well.
For the short-term bias, it’s very important to see how BTC behaves at the $116K level. If this level turns into support, we will probably see a touch of the upper part of the range, at $120K.
A breakout accompanied by increased volume will open the door for a break of the All-Time High (ATH) above $124K. If that happens, the next destination may very well be $130K. A return below $116K would imply that Bitcoin is headed towards the bullish trend line.
