Bitcoin (BTC) Price Pushes Past $64K as Monetary Ease Expectations Grow

Traders Tuesday pushed the chances of a second consecutive 50 basis point rate Fed rate cut up to 61%.

Bitcoin (BTC) price action aimed for more than a one-month high on Tuesday as U.S. afternoon trading hours began. Meanwhile, the tailwind of what is turning out to be a nearly global monetary easing cycle continued to propel crypto markets upward.

In the past 24 hours, BTC price rose nearly 2% to $64,300 at press time. The last time the price was above $65,000 was during the first week of August.

China joined nearly all other major global economies in easing monetary policy overnight to counter a slowdown in the economy. The news caused the Shanghai Composite to rise by more than 4%, but it only had a small and brief impact on the price of bitcoin.

After the Conference Board reported a sharp decline in consumer confidence in September, with its headline index falling to 98.7 from 105.6 — the steepest monthly decline since August 2021 — prices actually fell below $63,000 in the morning hours in the U.S. According to CME FedWatch, the news raised expectations of the U.S. Federal Reserve cutting its benchmark interest rate by another 50 basis points at its November meeting to 61% from 50% a day earlier.

Shortly after, the most recent figures showed a substantial increase in the U.S. M2 money supply in August. The combination of easier China and U.S. monetary policies and rising money supply appeared to be the catalyst for bitcoin's sustained rise throughout afternoon trading. Gold also benefited from the news, rising 1.4% to yet another record high of $2,690 per ounce.

Bitcoin is now higher by more than 10% from week-ago levels with today's advance, but it's hard to say there's been an upside breakout when the price remains below the level of just a few weeks ago.

"Very psychologically difficult to flip from looking to trim on pops during chop to letting your winners ride," wrote well-followed analyst Will Clemente. "A confirmed change in market structure above $65,000 on BTC is the threshold for risk on and switching this bias in my opinion."

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