The Cetus hack on the Sui blockchain resulted in a loss of $223 million after hackers exploited a security flaw in the protocol’s smart contract code. Following this breach, the Sui Foundation announced it would provide a secured loan to Cetus, enabling the protocol to fully compensate users affected by the stolen funds. This loan forms part of a larger recovery strategy aimed at covering losses that Cetus could not handle alone. Sui Foundation to Support Cetus Hack Recovery The Sui Foundation’s loan is designed to help Cetus cover the stolen assets that have been bridged off the Sui blockchain. Cetus will combine these loan proceeds with its treasury funds to cover the total loss caused by the hack. According to a recent post on X by Cetus, this loan is a crucial step to enable a 100% recovery for users affected by the Cetus hack, assuming the locked funds… Read More at Coingape.com
Ahead of the US Federal Reserve FOMC Meeting on May 6, the market is analyzing the impact of its latest move to resume bond purchases. Over the past few weeks, Fed Chairman Jerome Powell has waded off pressures to lower interest rates at a time when pundits believe this move could revive the market. However, the apex bank resumed bond purchases, fueling more speculation on what this move means for the broader financial market.
FOMC Meeting and the Bond Purchase Twist
The US Federal Reserve has initiated its biggest 3-year bond purchase since 2021, according to an X update from Money Guru Digital. The bank injected $20 billion daily, as shown in the Treasury auction results. With expectations for interest rate cuts at the FOMC meeting slated for May 7.
It is worth noting that this liquidity injection marks a big statement from the Fed as it suggests the bank is addressing lingering financial stress. This level of capital injection was last seen during the COVID-19 pandemic, a comparative measure to stabilize the market.
Amid the ongoing U.S.-China trade war and changing market realities, Fed Chair Jerome Powell is acting more cautiously. Despite the tempered approach to the market stabilizing plans, the exact policy update from tomorrow’s meeting can change the market trend.
Interest Rates Difference: Jerome Powell and President Trump in Spotlight
Outside the FOMC meeting, Jerome Powell and US President Donald Trump have clearly different views on how to handle the economy. As CoinGape reported earlier, President Trump urged the Fed to lower interest rates ahead of Wednesday’s meeting.
The premise hinges on inflation being under control. It is pegged at 2.39%, down from 2.82% in March. Despite the tariff war, this inflation is closer to the benchmark 2% annualized target set by the Federal Reserve.
It remains unknown what the Fed’s position is, but bond purchases might provide short-term relief for the financial market overall.
Key Implications for Bitcoin and Risk Assets
Historically, risk-on assets like Bitcoin are known to react to FOMC meeting decisions. A lowered interest rate will make the yield on crypto assets more attractive to investors.
After an intense volatility earlier in the trading day, Bitcoin price has reclaimed the $95,000 mark amid a 1.3% rally. Altcoins are also responding to the potential interest rate update tomorrow with Ethereum, XRP, and Solana paring off their daily losses.
Per an earlier BTC price review, the coin has a potential $100,000 breakout thesis. Irrespective of the direction of the Fed on Wednesday, a move that may also materialize if the Fed continues to inject liquidity into the market.
Bitcoin has faced notable volatility in recent days, with strong market growth on Sunday, followed by a complete wipeout on Monday.
Despite these fluctuations, the hope for a recovery remains, fueled by FOMO (fear of missing out) and greed-driven investors. These sentiments could play a crucial role in Bitcoin’s price movement.
Bitcoin Investors Are Bullish
The continued decline in exchange balances signals a pattern of accumulation. Over the past week, more than 27,976 BTC, worth over $2.88 billion, was purchased by investors. This has reduced the available supply to approximately 3 million BTC.
The idea that Bitcoin has not yet reached its all-time high (ATH) encourages further investment, as many believe the current price levels represent an opportunity that won’t last long. FOMO remains a significant driver, as retail and institutional investors alike bet on Bitcoin’s future potential.
The IOMAP (In/Out of the Money Around Price) indicator suggests that Bitcoin has strong support around the $102,886 to $99,894 range, where investors have accumulated over 398,590 BTC worth more than $41 billion. This makes the region a strong buying zone, with many investors holding onto their positions in anticipation of Bitcoin’s next upward movement.
A decline below this support is unlikely because investors are waiting for a price increase rather than selling. In addition to the strong accumulation zone, the general market sentiment is bullish. The ongoing support at these levels reinforces the view that Bitcoin is positioned to continue its rise.
Bitcoin is currently trading at $102,907, just above the critical $102,734 support level. Despite today’s 3.3% drop, further price declines seem unlikely due to the strong demand zone just below this level. Buyers appear willing to step in at these price points, suggesting stability in the short term.
With Bitcoin having briefly risen to $107,108 earlier in the day, it seems likely the cryptocurrency will recover its losses. Investor accumulation is expected to push Bitcoin higher, and it could breach the $105,000 level again, forming consolidation above the $102,734 support. This would set Bitcoin on course for continued growth, bringing it closer to its ATH of $109,588, which it stands 6.5% away from.
However, the bullish outlook could be invalidated if long-term holders (LTHs) decide to sell off their positions to secure profits. If this happens, Bitcoin’s price could slip below the critical $102,734 support, potentially bringing it down to the $100,000 range.
With crypto market tension rising due to US President Donald Trump’s new tariff policy, all eyes are on the US Federal Reserve’s interest rate decision on March 19. Experts believe Fed Chair Jerome Powell will keep rates at 4.25%-4.50%, which could push Bitcoin past $88,000!
Market Awaits FOMC Decision
The Federal Open Market Committee (FOMC) meeting on March 18-19 is adding to the market’s tension. With the interest rate decision set for March 19, traders are bracing for potential volatility.
However, all focus is on Federal Reserve Chair Jerome Powell’s speech, as his words could push Bitcoin higher or slow it down. Many crypto investors are hoping for hints of rate cuts, which could boost Bitcoin past $83k.
Market analyst Obez said, “If Powell hints at easing policies, Bitcoin could break past $83,000.” A positive outlook could bring more money into crypto.
Thus, inflation is still at 2.8%, above the Fed’s 2% goal, and strong job growth suggests no urgent need for stimulus. This could limit Bitcoin’s gains in the short term.
Key Bitcoin Levels to Watch
Bitcoin must turn the $85k resistance level into support to aim for higher levels, possibly reaching $88K. This requires BTC to reclaim its position above the 200-day exponential moving average (EMA), which it lost on March 9 for the first time since August 2024.
Meanwhile, the bearish scenario suggests a drop below $78,000, with a potential retest of support at $74,000. Further declines could push BTC toward the $70,000-$66,000 range.
Analysts like SuperBitcoinBro and Nebraskangooner warn that Bitcoin could revisit $71,300 to $73,800 before making its next big move.
ETF Demand Brings Hope
A bright spot for Bitcoin bulls is the increasing demand from spot Bitcoin ETFs. On March 17, ETFs recorded $274 million in inflows—the highest since February 4. This could provide the momentum needed for Bitcoin to break above its current resistance and target new highs in the coming weeks.
The post Bitcoin Set to Soar? Fed’s Big Decision Could Push BTC Past $88K! appeared first on Coinpedia Fintech News
With crypto market tension rising due to US President Donald Trump’s new tariff policy, all eyes are on the US Federal Reserve’s interest rate decision on March 19. Experts believe Fed Chair Jerome Powell will keep rates at 4.25%-4.50%, which could push Bitcoin past $88,000! Market Awaits FOMC Decision The Federal Open Market Committee (FOMC) …
