Key points:
- Bitcoin rebounds from its recent dip as optimism over strategic reserves outweighs concerns about Federal Reserve policy.
- BTC price targets $119,000, climbing nearly 3% from FOMC meeting lows.
- Corporate Bitcoin treasuries increase their holdings by nearly 30,000 BTC within 48 hours despite ongoing market volatility.
On Thursday, Bitcoin quickly bounced back as market sentiment shifted from Federal Reserve worries to enthusiasm over strategic reserves.
Bitcoin traders focus on strategic reserves as expectations for rate cuts decline
Data from TradingView showed BTC/USD rising nearly 3% from Wednesday’s local lows.
These lows followed a Federal Reserve meeting that was more hawkish than anticipated on interest rates.
Chair Jerome Powell remained cautious about future rate cuts after the Federal Open Market Committee (FOMC) kept rates steady, offering no indication of policy easing at the upcoming September meeting.
“Although fluctuations in net exports continue to impact the data, recent indicators suggest that economic growth slowed during the first half of the year,” Powell noted in a related press statement.
“The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
Data from CME Group’s FedWatch Tool showed market expectations shifting to favor rates remaining unchanged in two months.
Powell emphasized that employment data would be crucial moving forward, given concerns about the labor market’s continued strength. Initial jobless claims were scheduled for release on Thursday, alongside the Fed’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index.
Following the FOMC announcement, Powell dismissed pressure from US President Donald Trump to lower rates or step down, telling reporters he had “no updates” regarding resignation.
Shortly after, Robert “Bo” Hines, executive director of the US President’s Council of Advisers on Digital Assets, stepped in with positive news.
He confirmed that the White House still plans to establish a strategic Bitcoin reserve and expects to begin “in short order.”
“We recognize the importance of a strategic Bitcoin reserve, we’re huge supporters of Bitcoin and the Bitcoin community, and we’re committed to delivering on this,” Hines said in an interview.
Analyst on BTC treasury purchases: “Those in the know, know.”
Bitcoin price action was volatile, with cross-crypto liquidations approaching $500 million in the 24 hours leading up to this report, according to data from CoinGlass.
Behind the scenes, corporate Bitcoin treasuries were quickly increasing their exposure.
“While you were worried about the Fed, Bitcoin Treasury Companies just had one of their biggest buying days ever yesterday,” Charles Edwards, founder of the quantitative Bitcoin and digital asset fund Capriole Investments, shared in a post on X.
Capriole’s data shows that treasury purchases on July 29-30 totaled nearly 30,000 BTC.
“Institutional net buying just breached 97% of all transactions,” Edwards added in a separate post Thursday.
“The last time net buying by the pros was this high was August 2020. Those who know, know.”
