Bitcoin (BTC), the world’s oldest and most valued cryptocurrency, continues its impressive upward trajectory, breaking past the $65,500 mark and reaching an intra-day high of approximately $66,000. This surge has prompted bullish predictions for Bitcoin’s price movement.
As of now, the global cryptocurrency market cap stands at $2.37 trillion, reflecting a 24-hour gain of 3.44%. The recent rally in Bitcoin’s price is largely attributed to increased speculation surrounding the potential victory of Donald Trump in the upcoming November election, which has bolstered BTC’s price.
Moreover, the market remains optimistic about the imminent trading of spot Ether ETFs, set to begin next Tuesday. This development is expected to ease selling pressure, especially following the complete liquidation of Mt. Gox’s BTC holdings. Additionally, net positive inflows into BTC ETFs signal sustained demand for Bitcoin.
Northern Data AG’s €214 Million Capital Raise for Bitcoin Mining and AI Expansion
European Bitcoin mining company Northern Data AG has unveiled plans to raise approximately €214 million by issuing 10,699,446 new shares. This move represents a 20% increase in its current share capital, with shares priced at €20 each, a 1.7% premium over recent trading averages. The capital raised will be allocated towards expanding Northern Data’s cloud platform and physical data centers across Europe and the U.S.
Key Details:
- Capital Raise: €214 million
- New Shares: 10,699,446 at €20 each
- Expansion: Cloud platform and data centers in Europe and U.S.
The company aims to enhance its infrastructure for high-performance computing (HPC) and generative artificial intelligence (AI), reinforcing its leadership in HPC and driving innovation in AI. This capital raise signals confidence in Bitcoin mining infrastructure and may positively influence market sentiment within the BTC sector.
Impact of US Dollar Strength and Federal Reserve Rate Cuts on Bitcoin Prices
The US dollar has demonstrated resilience despite expectations of imminent interest rate cuts by the Federal Reserve starting in September. Federal Reserve Chair Jerome Powell indicated that recent inflation data suggests prices are stabilizing close to the Fed’s targets. In June, US consumer prices saw their first decline in over four years, with annual inflation easing to 3% from 3.3% in May.
Powell suggested that the Fed might not wait for inflation to reach the 2% target before implementing rate cuts, implying potential reductions soon to lower borrowing costs.
Key Points:
- US Dollar Strength and Fed Rate Cuts Influence Bitcoin Prices
- Lower Rates Weaken the Dollar, Making Bitcoin More Attractive
- Annual Inflation Eased to 3% from 3.3% in May
A stronger dollar typically exerts downward pressure on commodity prices, including Bitcoin. However, the prospect of rate cuts could support Bitcoin prices, as lower interest rates tend to weaken the dollar, making alternative investments like Bitcoin more appealing.
Bitcoin Price Prediction
Bitcoin (BTC/USD) is currently trading at $65,870, up 1.13% on the day. The 4-hour chart highlights key price levels that traders should closely monitor.
- Pivot Point: $65,010, serving as a critical support level
- Immediate Resistance: $66,770, with subsequent resistance levels at $68,260 and $69,740
- Immediate Support: $63,440, followed by $62,070 and $60,740
Technical Analysis:
- Relative Strength Index (RSI): 68, indicating robust buying interest
- 50-day Exponential Moving Average (EMA): $62,350, providing additional support for the current price trend
In conclusion, Bitcoin remains bullish above the $65,010 pivot point. However, a break below this level could trigger a sharp selling trend. Traders should watch for movements above $66,770 to confirm further bullish momentum while monitoring support levels to manage potential downturns.
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