Bitcoin Cash reaches annual high: Fed interest rate cut drives upwards!

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Bitcoin Cash hits a new yearly high of $648.20 after Fed interest rate cuts. What does this mean for the crypto market?

Bitcoin Cash erreicht mit $648.20 ein neues Jahreshoch nach Zinssenkungen der Fed. Was bedeutet das für den Kryptomarkt?
Bitcoin Cash hits a new yearly high of $648.20 after Fed interest rate cuts. What does this mean for the crypto market?

Bitcoin Cash reaches annual high: Fed interest rate cut drives upwards!

The cryptocurrency market is currently showing remarkable development, led by Bitcoin Cash (BCH), whose price hit a new annual high of $648.20 on Thursday. This increase is directly attributable to the US Federal Reserve's decision to cut interest rates by 25 basis points, which boosted market conditions and created optimistic sentiment among investors. This information comes from FXStreet.

The price of BCH rose almost 3% on Wednesday after the Federal Open Market Committee (FOMC) announced the rate cut. Analysts see opportunities for two additional rate cuts during the year, which could influence market expectations. The FOMC's latest projections suggest that the average interest rate could be 3.6% by the end of 2025, down from the previous estimate of 3.9%.

Trading volume and market sentiment

BCH trading volume on Thursday reached $1.18 billion, its highest level since December 2024. Interestingly, futures open interest in BCH increased to $595.78 million from $486.36 million on September 11. These developments show the increased interest in BCH and suggest more bullish market sentiment, especially as the ratio of long to short positions stands at 1.28 - the highest level in over a month.

Despite a slight decline earlier in the week, BCH closed above $616.70 on Wednesday. Technical analysis shows that the Relative Strength Index (RSI) is at 65, indicating a continued uptrend. There are also signs of a bullish crossover signal in the Moving Average Convergence Divergence (MACD) indicator, suggesting a continuation of the uptrend. If the uptrend continues, BCH could re-challenge the highs of $719.50 reached on April 5, 2024.

Future outlook

The possible rate cut has sparked greater optimism in the cryptocurrency market. The environment encourages risk-on-asset behavior among investors who bet on a positive development of BCH. Analysts also believe a drop to the 50-day exponential moving average (EMA) at $573.7 is possible if market conditions change.

Developments surrounding BCH and overall market sentiment remain of great interest to investors, especially in light of the upcoming FOMC meetings and related monetary policy decisions.