Bitcoin Cash Zooms to Yearly High on Fed’s 25bps Rate Cut and Improved Market Sentiment
Bitcoin Cash (BCH) has jumped to a fresh yearly high of $648.20 after the US Federal Reserve announced a cut in interest rates by 25 basis points. The Fed’s dovish policy, which indicates potential cuts in rates later this year, has spurred a risk-on mood across the cryptocurrency market. On-chain metrics register trading volumes of $1.18 billion, the highest since December 2024, with increasing futures open interest and a strong long-to-short ratio, which signal renewed investor demand. With bullish momentum backed by technical indicators like the RSI and MACD, Bitcoin Cash is ready to potentially test higher levels above $700. KEY LOOKOUTS • BCH may extend its rally to retest the April 2024 high at $719.50 if bullish momentum prevails. • Additional Fed rate cuts could maintain risk-on mood and underpin BCH’s price appreciation. • Record trading volumes of $1.18 billion indicate high investor interest and participation in markets. • The RSI being 65 and a maintained bullish MACD crossover indicate sustained upside momentum. Bitcoin Cash is showing good bullish momentum, achieving a new yearly high at $648.20 after the Fed 25 basis point rate reduction. Investor confidence has been lifted by the promise of additional rate cuts later in the year, fueling renewed demand for the cryptocurrency space. On-chain indicators show this optimism, with volumes reaching $1.18 billion—the highest since December 2024—combined with increasing futures open interest and a positive long-to-short ratio. Technical indicators, including the RSI and MACD, support the ongoing upward trend, suggesting that BCH could continue its rally toward key resistance levels above $700. Bitcoin Cash surged to a yearly high of $648.20 following the Fed’s 25bps rate cut, driven by renewed market optimism. Rising trading volumes and bullish technical indicators signal strong momentum, with potential to test levels above $700. • Bitcoin Cash (BCH) hit a new annual high of $648.20 after the Fed’s 25bps rate reduction. • The dovish policy by the Federal Reserve is pointing towards further rate cuts in the second half of 2025, enhancing risk-on sentiment. • Volume increased to $1.18 billion, the highest since December 2024, signaling increased investor interest. • Futures open interest improved from $486.36 million to $595.78 million, indicating fresh money flowing in. • BCH long-to-short ratio is at 1.28, indicating a largely bullish sentiment of the market. • Chart indicators such as RSI (65) and MACD indicate bullish momentum to continue. • As long as the rally persists, BCH may retest its April 5, 2024 high of $719.50. Bitcoin Cash has dominated much of the attention in the crypto space, recording a new high for the year at $648.20 after the US Federal Reserve reduced interest rates by 25 basis points. The dovish tone of the Fed, coupled with the chance of more rate cuts in the second half of the year, has inspired investor confidence and fueled a risk-on attitude in digital assets. This has seen renewed focus on BCH, marking its increased traction among traders and investors. BITCOIN DAILY CHART PRICE SOURCE: TradingView The rise in Bitcoin Cash’s trading volume, which reached $1.18 billion—the most since December 2024—mirrors greater market involvement and liquidity. Futures open interest has also increased, reflecting new capital coming into the market, as the BCH long-to-short ratio shows a fairly bullish sentiment overall. Generally, these improvements signal greater market activity and optimism regarding Bitcoin Cash’s growth prospects in the next few months. TECHNICAL ANALYSIS Bitcoin Cash also displays robust bullishness. The daily Relative Strength Index (RSI) is 65, indicating buying pressure is building without yet being overbought. Also, the Moving Average Convergence Divergence (MACD) indicator had a bullish crossover in early September, which still holds, indicating the trend is upward. All of these technical indicators point to BCH being in good position to continue its bull run, with a chance to test higher resistance levels in the near future. FORECAST Bitcoin Cash looks set to continue on an upward trajectory in the short term, with the capacity to test its April 2024 high of $719.50 if the bull run continues. Sustained investor interest, increasing trading volumes, and a favorable macroeconomic backdrop fueled by the dovish tone of the Fed can push BCH higher, drawing in fresh buyers and continuing on the uptrend. But warning signs are there as profit-taking or surprise market action may instigate short-term reversals. Any negative news, unexpected monetary policy changes, or general cryptocurrency market corrections will briefly stem BCH’s advance, providing room for consolidation prior to the next leg up.