On Friday (September 13), after Bitcoin surged higher, it fluctuated at the level of 58,000 US dollars. The bulls held the integer mark unbroken, and Dogecoin fell slightly after hitting $0.1032. Billionaire Elon Musk (Elon Musk) once again tweeted that he would join the US Government Efficiency Committee, and its D.O.G.E abbreviation boosted meme coins. The Federal Reserve will issue the September resolution next week to cut interest rates by 25 basis points to support cryptocurrency purchases.

Former US president and Republican presidential candidate Donald Trump (Donald Trump) said that if he wins the November US presidential election, he will appoint billionaire Musk as the chairman of the US Government Efficiency Commission (Government Efficiency Commission).

Musk, known as the “father of Dogecoin,” wrote on Thursday: “Department Of Government Efficiency.”

Its abbreviation is D.O.G.E, which boosted Dogecoin buying.

Musk tweeted last weekend: “US Government Efficiency Committee.” The post attracted more than 80 million traffic. The picture shows Musk sitting at D.O.G.E's desk. The full name of this English abbreviation is Department of Government Efficiency, or the US Government Efficiency Committee.

According to IntoTheBlock data, 70% of Dogecoin holders are currently profitable. Among them, 62% of Dogecoin's wallets have increased from 158 to 179 transactions over 0.1 million dollars in a single day.

Bezinga notes that Dogecoin issimple moving averageOn the (SMA) chart, the 200-day SMA price of $0.14 is above the 50-day and 100-day SMA price levels. This usually means that the long-term trend of the asset is quite weak. It can signal the end of a previous uptrend and the beginning of a potential downtrend.

According to the latest data released by the US Bureau of Labor Statistics on Thursday, the US producer price index (PPI) grew at an annual rate of 1.7% in August, lower than market expectations of 1.8%, and hit a new low since February this year; the previous value was also revised down from 2.2% to 2.1%. Following the Consumer Price Index (CPI) data, it further shows that US inflation is slowing down.

Meanwhile, for the week ending September 7, the number of initial jobless claims in the US recorded 0.23 million, slightly higher than market expectations.

The value was revised from 0.227 million people to 0.228 million people, but the overall change was not significant.

In response to this economic data, Paul Ashworth, a macro analyst at the economic research institute KITU, pointed out that PPI once again provides evidence that the Federal Reserve will start cutting interest rates next week. “As expected, PPI increased 0.2% month-on-month last month, and the July growth rate was revised downward.”

However, the analyst also pointed out that judging from Wednesday's CPI data, the possibility that the Federal Reserve will cut interest rates drastically is not high.

“Combined with CPI, PPI data shows that the monthly rate of the core PCE, which is preferred by the Federal Reserve, will rise moderately by 0.14%. The Fed is expected to cut interest rates by 25 basis points next week. The threshold for them to cut interest rates drastically is still very high.”

QCP Capital pointed out that based on CPI data and PPI data, the probability that the Fed will cut interest rates by 25 basis points has climbed to 85%, reaching the highest level in nearly a month.

However, the rebound on Bitcoin's side shows that the bullish sentiment in the market is relatively dominant. This conclusion can be drawn from investors continuing to bet on October and December bullish options.

However, apart from expectations of the Federal Reserve's interest rate cut and the impact of the US election, there may be no fundamental factors affecting Bitcoin in the near future, so Bitcoin's volatility will decline until the dust settles.

Bitcoin's volatility fell 12% this week, fueled by the CPI release and presidential debate. As there are no major overall economic events in the short term, markets generally expect volatility to decline before next week's FOMC meeting.

BitcoinTechnical analysis

Cryptocurrency analyst Daan Crypto Trades assessed the current state of the Bitcoin market and clarified Bitcoin's historical performance trends in September. Although it is widely believed that Bitcoin often faces challenges in September, Daan assesses that whether at the beginning of a bullish trend, late in the previous market cycle, or even in a bearish phase, September usually marks a partial bottom, then an increase in the fourth quarter.

Recently, Bitcoin experienced two significant declines. In particular, on August 5, Bitcoin fell close to 25%, and the price once fell to 49,000 US dollars.

Subsequently, there was another retracement on September 6, and the price fell to 52,000 US dollars. However, amid these fluctuations, Bitcoin showed resilience and traded at $58,360, indicating strong support for the macro upward trend line.

Furthermore, Daan Crypto Trades emphasized that a significant portion of Bitcoin's liquidity is still at a high level. This observation is consistent with the historical level of the past six months effectively cleared during a sharp drop in prices in early August.

Analysts highlighted key levels that need to be monitored and emphasized the importance of breaking through the $65,000 mark. Breaking through this level would mean the formation of locally higher highs, which could pave the way for reaching the $70,000 liquidity target.