Fed stimulus for Bitcoin: The dove has left the cage

After the dovish minutes of the Federal Reserve (Fed) on August 21, Bitcoin (BTC) started to rise.

The Fed, which released the meeting minutes for July, gave signals for interest rate cuts. Fed officials agreed that a rate cut would be appropriate in light of upcoming economic data.

The Fed's dovish approach has stirred up the cryptocurrency market, which falls into the risky asset class. The leading cryptocurrency BTC has recorded a rise of over 3% in the past 24 hours.

Bitcoin revived with the Fed: Now all eyes are on Fed Chairman Powell

After the Fed minutes signaled a rate cut, eyes turned to Fed Chair Jerome Powell. Powell, who will speak at the Jackson Hole Monetary Policy Symposium on Friday, is expected to provide detailed information about interest rate cuts.

With the positive impact created by the Fed, Bitcoin's Open Interest (OI) increased by $1.3 billion. According to the latest data, OI approached $32 billion. It is also noteworthy that traders mostly opened long positions.

The increase in OI, which represents the total number of unclosed transactions in futures trading, gained positive momentum according to traders.

According to the data obtained from CoinGlass, long positions rose to 50.63%, while short positions fell to 49%.

BTC, which touched 61,000 dollars in the evening of the previous day, could not hold at that level. The leading cryptocurrency is trying to hold onto the 60,000 dollar support again.

Markus Thielen, the research director of 10x Research, commented on the Fed minutes. Thielen said:

"A rate cut in September is almost certain. The 'vast majority' of FOMC members supported a rate cut in September."

Thielen, emphasizing the importance of Powell's speech, continued as follows:

"Due to Powell's speech on Friday reinforcing a dovish outlook and providing a favorable ground for monetary policy, a rise is expected in risky assets such as stocks and Bitcoin."

This article does not contain investment advice or recommendation. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.