Bitcoin Back Above $60,000, After Fed 50bp Rate Cut

There is a sigh of relief in the crypto scene, with the significant reduction in the US key interest rate, the Fed has laid the foundation for a new Bitcoin rally, at least in theory. The psychologically important mark of $60,000 per Bitcoin (BTC) has been cracked and a 10 percent weekly increase makes us want more.

Analysts point to two indicators that could play an important role in the price development of Bitcoin in the near future:

CryptoQuant is particularly looking at the situation of so-called short-term holders of Bitcoin (STH) and that of HODLers who keep their BTC for a long time. STH are defined by the fact that they regularly build up or reduce their Bitcoin holdings in less than 155 days. They are also the ones who usually try to buy Bitcoin during uptrends.

But since 2012, there have never been so few Bitcoins stored by short-term holders as there are now, CryptoQuant has observed based on blockchain data. This shows that at the current price levels, there is no real demand for BTC from this group of investors and this could seriously hinder further gains in the Bitcoin price curve.

Kaiko Research takes a different perspective in its latest weekly report . It focuses on the so-called Bitcoin dominance, i.e. the part of the market capitalization of all cryptocurrencies combined that is attributable to BTC.

Here, Bitcoin is presenting itself as strongly as it has not since April 2021, with around 55 percent of the monetary market share, and the trend is continuing to rise. Bitcoin is thus cementing its reputation as a “safe haven” among cryptocurrencies, indirectly also at the expense of altcoins.

Another informative fact for altcoin investors: Bitcoin is currently trading around 13 percent below its all-time high, which is now within sight. Things are very different for top altcoins. Ethereum (ETH) is lagging behind its all-time high by almost 50 percent, Binance Coin (BNB) is 20 percent behind and Solana (SOL) is 42 percent behind. Incidentally, of the top ten cryptocurrencies, apart from Bitcoin, only BNB managed to set new all-time highs this summer.

Conclusion: Bitcoin is king – but the air is getting thin at the top

No serious analyst is letting the Bitcoin ETFs in the USA, which have been bringing fresh wind and capital to the leading crypto currency since January, come into play this year. SoSo ‘s data shows a good week with capital inflows of around 300 million US dollars so far. Here, too, the US Federal Reserve’s interest rate cut was probably a reason.

The altcoins cannot rely on such ETF effects, and the new Ethereum ETFs have not yet developed any momentum. In this mixed situation, price forecasts are extremely difficult. But it can be said that there is little to suggest an altcoin season in which Ethereum and Co. catch up with Bitcoin’s gains. Rather, it seems that Bitcoin is doing its rounds quite lonely at the top of the crypto table and is still looking for momentum until the US presidential election.

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