Bitcoin breaks through $10,000 again, the Fed’s rate cut is just one of the positives

According to Bitpush data, Bitcoin, the cryptocurrency with the largest market value, continued to rise and broke through US$10,000 on the evening of July 31, Beijing time.

Bitcoin has been struggling around $9,500 since it fell below $10,000 on July 27. Although buying at lower prices has kept it from falling below the key support level of $9,000, the weak trend for several days and multiple short-term bearish signals have had a certain impact on market sentiment.

The industry believes that several important events this week will have a significant impact on the price of Bitcoin.

The hearing of the NYAG against Bitfinex and Tether held in New York on Monday was postponed, and the hearing of the Senate Banking Committee on cryptocurrency and blockchain regulation on Tuesday did not produce any substantive results. These two hearings did not have any substantial impact on the cryptocurrency market.

Therefore, the industry is particularly concerned about the Fed's possible interest rate cut decision today. Simon Peters, an analyst at eToro, told CCN that the current rise in Bitcoin is just a small market fluctuation. He said that the Fed's possible interest rate cut decision today will be an important test for Bitcoin, because this is the first time Bitcoin has experienced a Fed interest rate cut since its existence. He said, "If the interest rate is cut, Bitcoin is expected to rise; otherwise, it will fall."

However, other analysts disagreed, saying that today's rise in Bitcoin prices may be affected by multiple factors.

In addition, the crypto asset guidelines introduced by the UK regulator and the launch of the first physically settled Bitcoin futures by LedgerX are also good news for the crypto market.

In the crypto asset regulatory guidance issued by the UK Financial Conduct Authority (FCA), real cryptocurrencies such as Bitcoin and Ethereum are classified as "transaction tokens" by the FCA. Although they are subject to anti-money laundering rules, they are not regulated. Securitized tokens are classified as "specific investments" and therefore fall within the scope of FCA regulation.

The launch of physically settled Bitcoin futures contracts by Bitcoin derivatives provider LedgerX will be available to both retail and institutional investors, opening the door to Bitcoin investment to all U.S. investors who meet Know Your Customer (KYC) regulations.

In addition, geopolitical watchers have their eyes on Shanghai, and any progress in the restarted US-China trade negotiations will also have an impact on the prices of the cryptocurrency market.

AuthorLiang CHE