Bitcoin Eyes $60K and Likely Has More Room to Rally, Analyst Says

Cryptocurrencies
rallied
on
Friday
with
bitcoin

(BTC)
nearing
the
$60,000
level,
buoyed
by
strong
gains
across
the
board
on
traditional
markets.

Bitcoin
tumbled
some
1%
to
$57,600
earlier
during
the
day
after
software
company
MicroStrategy
announced
the
purchase
of
18,300
BTC
for
$1.1
billion.
The
largest
crypto
quickly
recovered
the
losses
and
rose
sharply
later
in
the
session,
up
2.2%
over
the
past
24
hours
at
$59,700.

Ethereum’s
ether

(ETH)
reclaimed
the
$2,400
level,
up
2.7%
during
the
same
period.
Crypto
analytics
firm
IntoTheBlock

noted
that
Ethereum’s
revenues
from
fees
rose
nearly
60%
in
the
past
week
as
blockchain
activity
picked
up.

The
broad-market
benchmark

CoinDesk
20
Index
advanced
2.5%,
led
by
double-digit
gains
of
Polygon’s
native
crypto

(MATIC)
as
Binance

added
spot
and
perpetual
trading
of
the
recently
upgraded
POL
token.

The
price
action
happened
as
U.S.
stocks
climbed
higher,
with
the
S&P
500
less
than
1%
away
from
its
July
record
high
a
few
hours
before
the
market
close.
Gold
continued
to
break
record
highs,
hitting
$2,600
per
ounce
for
the
first
time
ever.
A
decline
in
the
U.S.
dollar
against
major
currencies
supported
the
rally
across
asset
classes.

According
to
a

chart
shared
on
X,
bitcoin
likely
found
a
local
bottom
below
$53,000
on
September
6
and
is
only
on
its
7th
day
in
a
fresh
cycle.
The
previous
daily
cycle
lasted
over
sixty
days
and
topped
on
the
24th
day,
leaving
plenty
of
time
for
BTC
to
make
news
highs
before
rolling
over.

“These
cycles
have
time
left
should
remain
strong
into
FOMC,”
Loukas

said.

Next
week’s
key
event
to
watch
will
be
Wednesday’s
Federal
Open
Market
Committee
(FOMC)
meeting,
which
will
most
certainly
mark
the
Federal
Reserve’s
first
interest
rate
cut
since
2020.
Observers
are
still
divided
about
the
size
of
the
cut,
with
probabilities
almost
evenly
split
between
a
25
basis
point
and
a
larger,
50
bps
cut,
according
to

CME
FedWatch
Tool.

Despite
the
prospect
of
looser
monetary
policy,
which
would
in
theory
be
beneficial
to
risk
assets,
lingering
concerns
of
a
forthcoming
recession
weigh
on
the
market,
crypto
investment
firm
Ryze
Labs
said
in
a
Friday
report.

“The
key
variable
here
is
the
state
of
the
U.S.
economy,”
the
report
said.
“If
it
remains
resilient
and
avoids
a
recession,
risk
assets
are
likely
to
continue
their
upward
trajectory.
If
not,
then
we’re
in
for
a
bumpy
ride,”
the
report
added.