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Bitcoin Awaits Fed’s Powell as $61K Eyes Breakout

Bitcoin hovers around $61,000 as traders anticipate Federal Reserve Chair Jerome Powell's Jackson Hole speech, with hopes high for interest rate cuts that could drive the next price breakout.

• Main Points:

  • Jackson Hole Anticipation: Markets are keenly awaiting Powell's speech at the Jackson Hole summit, which could signal upcoming interest rate cuts.

  • BTC Price Action: Bitcoin has stabilized around $61,000, with $62,000 as key resistance.

  • Rate Cut Expectations: Traders are betting on a 0.25% rate cut in September, but surprises from Powell seem unlikely.

  • Historical Context: Previous rate cuts in 2019 didn't immediately boost BTC, but later fueled a bull run during the COVID-19 crisis.

  • Technical Indicators: Bitcoin is eyeing a breakout past the 200-period simple moving average, which could push prices to $64K-$65K.

• Detailed Insights:

  • Jackson Hole Anticipation: Bitcoin traders are closely watching the Federal Reserve's Jackson Hole symposium, where Chair Jerome Powell is expected to give a pivotal speech on future financial policy. Scheduled for 10 a.m. Eastern Time, Powell's address is seen as a potential catalyst for market movements, particularly if he hints at easing interest rates. With markets already pricing in a 100% chance of rate cuts, the focus is now on whether the Fed will opt for a 0.25% or 0.50% reduction in September.

  • BTC Price Action: As Bitcoin trades around $61,000, the market remains in a consolidation phase, with $62,000 acting as a crucial resistance level. Traders are looking for signs that the cryptocurrency could break out of this range, potentially igniting a new upward trend.

  • Rate Cut Expectations: The CME Group’s FedWatch Tool shows a strong expectation for a 0.25% rate cut in September. While some analysts believe Powell may not provide explicit guidance this far ahead of the next Federal Open Market Committee (FOMC) meeting, the anticipation alone is fueling speculation in risk assets like Bitcoin.

  • Historical Context: Looking back at 2019, the last time the Fed cut rates, Bitcoin's price actually saw a slight decline before the COVID-19 pandemic led to cuts to near-zero rates and a subsequent bull market fueled by massive liquidity injections. This historical pattern suggests that while rate cuts can support long-term bullish trends, the immediate impact on Bitcoin's price could be muted.

  • Technical Indicators: On the technical front, Bitcoin is testing the 200-period simple moving average on the 4-hour chart. A successful close above this level could see Bitcoin rally to $64,000-$65,000. However, if the price gets rejected, traders may need to brace for further consolidation before any significant moves.

Related: Bitcoin Open Interest Surges $1.3B After Fed's 'Dovish' Minutes

As markets await Powell's speech, Bitcoin remains at a critical juncture. A breakout above $62,000 could set the stage for a significant rally, but the path forward is uncertain, especially given the mixed signals from historical data and current market sentiment. Traders will be watching closely to see how macroeconomic factors, particularly the Fed's decisions, influence Bitcoin's next move.

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Bitcoin Whale Suffers Huge Loss in Recent Sale

A Bitcoin whale liquidated $18.25 million in BTC at a significant loss during the August market crash, missing out on a quick recovery.

• Main Points:

  • Massive Liquidation: The whale sold $18.25 million in Bitcoin at a loss after the August 5 market crash.

  • Initial Purchase: They initially bought $54.6 million worth of BTC at $63,878 last month.

  • Untimely Sale: The whale sold during a market dip to $49,557, missing out on a rapid recovery.

  • Further Losses: Despite the market rebound, the whale later sold another 300 BTC at a loss.

• Detailed Insights:

  • Massive Liquidation: According to Lookonchain, the whale liquidated $18.25 million in Bitcoin during the August 5 crash, realizing a substantial loss.

  • Initial Purchase: The whale originally bought $54.6 million worth of Bitcoin at $63,878 in July, anticipating market gains.

  • Untimely Sale: The whale sold a large portion of their holdings as Bitcoin plummeted to $49,557, driven by a global stock market collapse, including a 10% drop in Japan's Nikkei index.

  • Further Losses: Despite Bitcoin bouncing back to $60,000 just three days later, the whale sold another 300 BTC at a loss. This follows a similar scenario in March when they made a small profit but missed out on the all-time high of over $73,000.

Related: Bitcoin Hits $61K, But Investors Favor Stocks and Bonds

This case underscores the risks of reactive trading in volatile markets. While the whale incurred significant losses, the quick recovery of Bitcoin to above $60,000 highlights the resilience of the market. Traders may benefit from a more patient approach, especially in times of market turbulence.

El Salvador to Educate 80,000 Public Servants on Bitcoin

El Salvador is set to educate 80,000 public servants on Bitcoin, blockchain, cybersecurity, and AI through a new educational module as part of its ongoing commitment to integrate Bitcoin into the nation's infrastructure.

• Main Points:

  • Bitcoin Education Initiative: 80,000 public servants will undergo training in Bitcoin, blockchain, cybersecurity, and AI.

  • Higher School of Innovation in Public Administration (ESIAP): The training is part of the Public Administration certification, which includes nine modules and 160 hours of coursework.

  • Leadership and Vision: President Nayib Bukele initiated this program to enhance public administration, with support from the Bitcoin Office.

  • Broader Impact: This effort aims to deepen understanding and excellence in Bitcoin-related practices within El Salvador’s government.

• Detailed Insights:

  • Bitcoin Education Initiative: The Bitcoin Office of El Salvador announced a major initiative to educate 80,000 public servants on Bitcoin and its underlying technology. This educational push is part of a broader effort to integrate Bitcoin into the country's economic framework.

  • Higher School of Innovation in Public Administration (ESIAP): The Bitcoin training is part of the curriculum provided by ESIAP, an institution established by President Bukele in August 2021. The curriculum includes nine modules, covering 160 hours of virtual, asynchronous learning. The seventh module focuses on Bitcoin and other related fields such as blockchain technology, cybersecurity, and artificial intelligence.

  • Leadership and Vision: President Bukele’s administration continues to lead in Bitcoin adoption, with the Bitcoin Office spearheading this educational initiative. Stacy Herbert, Director of the Bitcoin Office, highlighted the importance of this training, stating that it will set a high standard of excellence in El Salvador’s public administration.

  • Broader Impact: This training is expected to have a significant impact on the country’s public sector, ensuring that civil servants are well-versed in emerging technologies. El Salvador’s commitment to Bitcoin education reflects its ongoing efforts to become a global leader in cryptocurrency adoption. Additionally, this initiative follows the country’s earlier efforts, including a pilot program to introduce Bitcoin education in schools launched in September 2023.

Related: Bitcoin Volatility Climbs as Price Retests $62K

El Salvador’s focus on Bitcoin education for public servants marks a critical step in its broader strategy to embed Bitcoin into its national infrastructure. This initiative not only enhances the digital literacy of its workforce but also positions the country as a pioneering force in the global cryptocurrency space. As the program unfolds, it is likely to set a precedent for other nations considering similar integrations of cryptocurrency into their public sectors.

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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results