Key Points
- On December 18, the upcoming FOMC assembly might result in a brand new rate of interest lower of 25 bps.
- Bitcoin hit a brand new ATH above $106,000 earlier right now, boosted by a number of components amidst an optimistic market.
Today, Bitcoin reached a brand new ATH above $106,400, forward of this week’s Federal Open Market Committee assembly which might result in a brand new rate of interest lower, in accordance with predictions.
BTC’s worth rally was sustained by a number of components together with Trump’s affirmation of a US BTC reserve, continued flows in BTC ETFs, and MicroStratgy’s addition to the Nasdaq 100 Index on Friday.
BTC Hits a New ATH Ahead of Fed’s Decision
At the second of writing this text, BTC is buying and selling above $105,000, up by over 3% right now.
Earlier, the digital asset reached a brand new ATH above $106,000, hitting a market cap of $2.11 trillion.
Now, BTC’s market cap is $2.08 trillion.
BTC rose to a brand new ATH earlier as buyers are ready for the US Fed’s choice concerning a brand new rate of interest lower. The FOMC assembly is scheduled to happen on December 18, and in accordance with CME Group, the potential of a brand new price of 25 bps is now 97.1%.
A brand new rate of interest lower within the US could be optimistic for BTC’s worth, as historic price cuts have boosted the worth of the digital asset, as CNBC notes in a current article.
Lower rates of interest additionally suggest a weakening greenback and rising cash provide – each these components have demonstrated long-term correlations with BTC up to now.
Other BTC Price Triggers
Bitcoin’s worth rally was sustained by continued inflows in BTC ETFs within the US which noticed fixed influxes since November 27.
The crypto merchandise recorded a cumulative net flow of $35.6 billion since their January launch, surpassing the essential $20 billion mark a lot sooner than gold.
BTC’s worth rally was additionally fueled by MicroStrategy’s addition to the Nasdaq 100 Index, an achievement that can supply exponential publicity to BTC to new potential buyers.
MicroStrategy turned the primary Bitcoin-centric firm on this planet to be included within the Nasdaq 100 Index, setting a attainable precedent for others to observe in its footsteps.
Also, the crypto market is stuffed with optimism stemming from the brand new upcoming Trump administration, particularly for the reason that new US President has just lately confirmed the creation of a BTC Reserve within the US.
All these bullish strikes set the stage for a brand new golden period for Bitcoin and the whole crypto business in 2025.
