Celestia, Jasmy, Pepe, MOTHER Iggy lead as Bitcoin hits $60k

Cryptocurrencies Surge Amidst Rate Cut Expectations

Cryptocurrencies are experiencing a notable recovery on Saturday, fueled by anticipation that the Federal Reserve will reduce interest rates next week. Bitcoin has regained a critical resistance level near $60,000.

Notable Gainers:

• Celestia (TIA): Rose 12% to $4.50, reaching a new high of $4.59.
• Popcat (POPCAT): Jumped 71% to $0.80, marking the highest level since late August.
• Pepe (PEPE): Gained 6%, while JasmyCoin (JASMY) rose over 5%.
• MOTHER Iggy (MOTHER): Increased by more than 5%.

The collective market capitalization of all tracked cryptocurrencies on CoinGecko has surpassed $2.20 trillion. This recovery aligns with positive performance in other asset classes, including gold and American equities.

The rally was sparked by encouraging inflation data released by the US on Wednesday. The data indicated a decline in headline consumer inflation to 2.5%, the lowest level in over two years. This raises the likelihood of the Federal Reserve beginning to lower interest rates on September 18th.

Bitcoin Whales and Sharks Accumulate

Bitcoin's rise was further driven by Michael Saylor's announcement that MicroStrategy has acquired an additional 18,300 BTC worth $1.1 billion. MicroStrategy remains the largest corporate holder of Bitcoin, with over 244,800 coins in its portfolio.

Additionally, data shows that large investors (whales and sharks) have been actively accumulating Bitcoin. The volume of Bitcoin on exchanges has declined to its lowest level in years.

Stablecoin Holdings Decline

Meanwhile, data from Nansen indicates that smart money's holdings in stablecoins have been decreasing. This suggests a gradual shift away from risk aversion and towards more active trading.

Potential Risks

Despite the positive momentum, Bitcoin and altcoins face the potential risk of a "death cross" technical pattern, as the spread between the 50-day and 200-day moving averages narrows.