Bitcoin Races Towards $70K as Solana Leads Bull Run Ahead of Fed Meeting

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

July 29, 2024 01:47 EDT

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Bitcoin and Solana made gains on Monday, with Bitcoin climbing nearly 2% to around $69,381 and Solana surging almost 5% to about $194.

This upward movement is notable as it occurs ahead of the crucial Federal Open Market Committee (FOMC) meeting scheduled for July 30-31.

Analysts anticipate the central bank will strongly hint at a potential interest rate reduction. This cut is likely to occur at the September meeting as the Fed transitions from a restrictive monetary policy to a more neutral stance. Until then, the central bank is expected to maintain rates at its current 5.25% to 5.50% level.

Inflation is subsiding, unemployment is increasing, and consumer spending is slowing down, aligning conditions for a potential interest rate cut. Given the central bank’s aim for a soft landing, the emerging economic data favor such a move.

Solana Tops Binance Coin in Market Cap

Last week, Solana’s market value surged dramatically, surpassing Binance Coin (BNB)’s for a brief period. The two cryptocurrencies have been intensely competing since then.

Also, recent spot Bitcoin and Ethereum ETF approvals have sparked speculation about potential applications for other crypto ETFs. Investors are particularly interested in whether BlackRock, the world’s largest asset manager, will file for spot ETFs on additional altcoins, like Solana.

Trump’s Bitcoin Speech Boosts Investor Interest

Currently, Bitcoin has risen to the upper boundary of the descending channel established in March.

Republican presidential nominee Donald Trump’s speech at the Bitcoin Nashville conference on Saturday also generated significant media attention and boosted investor interest in Bitcoin.

Trump’s remarks were part of a broader Republican strategy to attract crypto holders before the Nov. 5 election. At the conference, he pledged to make the US the “crypto capital” of the world. He also promised to fire SEC Chair Gary Gensler if elected President and establish a national bitcoin reserve.