Bitcoin crosses $64,000 amid monetary easing expectations

The price hasn’t been above $65,000 since the first week in August

The price of bitcoin took aim at more than a one-month high during U.S. afternoon trading hours on Tuesday as the tailwind of what is shaping up to be a near global monetary easing cycle continued to push crypto markets up.

Bitcoin was ahead almost 2% over the last 24 hours at $64,300. The price hasn’t been above $65,000 since the first week in August.

China overnight joined nearly all other major global economies in easing monetary policy to combat a slowdown in the economy. The news sent the Shanghai Composite more than 4% higher, but provided only a small and brief rise in the price of bitcoin.

Prices actually slipped under $63,000 in the U.S. morning hours after the Conference Board reported a sharp drop in consumer confidence in September, its headline index declining to 98.7 from 105.6 – the steepest monthly drop since August 2021.

Consumers’ assessments of current business conditions turned negative while views of the current labour market situation softened further, according to the Conference Board’s Dana Peterson. Consumers were also more pessimistic about future labour market conditions and less positive about future business conditions and future income.

The news though, sent expectations of the U.S. Fed cutting its benchmark interest rate by another 50 bps at its November meeting to 61% from 50% a day earlier, shows the CME FedWatch.

Shortly after, the latest figures showed a sizable increase in the U.S. M2 money supply in August. The combination of easier China and U.S. monetary policies and increasing money supply seemed to be the catalyst for bitcoin’s sustained gain throughout afternoon trading. Gold too jumped 1.4% to yet another record high of $2,690 per ounce.