CryptoETHBitcoin Nears $60,000 as Cryptocurrencies Rally Amid Broad Market Gains

Bitcoin Nears $60,000 as Cryptocurrencies Rally Amid Broad Market Gains

On Friday, cryptocurrencies experienced a notable rally, with Bitcoin (BTC) approaching the $60,000 mark, buoyed by strong performances across traditional financial markets.

Initially, Bitcoin saw a decline of about 1% to $57,600 following news that MicroStrategy had purchased 18,300 BTC for $1.1 billion. However, the leading cryptocurrency quickly rebounded, ending the day with a 2.2% gain and trading at $59,700.

Ethereum’s ether (ETH) also made significant gains, reclaiming the $2,400 level and rising 2.7% in the same period. Crypto analytics firm IntoTheBlock reported a nearly 60% increase in Ethereum’s revenue from fees over the past week, driven by increased blockchain activity.

The CoinDesk 20 Index, a broad-market benchmark for cryptocurrencies, advanced 2.5%, spurred by double-digit gains in Polygon’s native token (MATIC) following Binance‘s addition of spot and perpetual trading for the upgraded POL token.

This uptick in cryptocurrency prices coincided with gains in U.S. stocks, with the S&P 500 approaching its July record high shortly before market close. Gold also reached a historic high of $2,600 per ounce, driven by a decline in the U.S. dollar against major currencies.

Looking ahead, Bitcoin’s recent rally may have further momentum, according to well-followed trader and analyst Bob Loukas. Loukas’ analysis of Bitcoin’s daily cycles suggests the cryptocurrency may have found a local bottom below $53,000 on September 6 and is currently in the early stages of a new cycle. The previous cycle lasted over sixty days and peaked on the 24th day, indicating potential for further gains before any decline.

“The cycles have time left and should remain strong into the Federal Open Market Committee (FOMC) meeting,” Loukas said.

The FOMC meeting next Wednesday will be a critical event to watch, as it is expected to be the Federal Reserve’s first interest rate cut since 2020. Market expectations are divided between a 25 basis point cut and a more substantial 50 basis point reduction, according to the CME FedWatch Tool.

Despite the potential for looser monetary policy, which generally benefits risk assets, concerns about a possible recession continue to weigh on the market. Crypto investment firm Ryze Labs highlighted in a Friday report that the future trajectory of risk assets depends heavily on the resilience of the U.S. economy.

“The key variable is the state of the U.S. economy,” the report stated. “If it remains resilient and avoids a recession, risk assets are likely to continue their upward trajectory. If not, we may face a turbulent period,” it added.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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