Bitcoin Surges Above $100,000 Amid Fed Rate Cut Expectations
Bitcoin has surpassed the $100,000 level again following the alignment of U.S. inflation data with expectations and increased speculation regarding the Federal Reserve's (Fed) potential interest rate cuts. The Consumer Price Index (CPI) in the U.S. reported a monthly increase of 0.3% and an annual increase of 2.7% in November, leading to a 98% probability of a 25 basis point rate cut by the Fed.
Prompted by a notable recovery across the crypto market, Ethereum has also risen nearly 9%, reaching $3,930. As investor sentiment improves in the cryptocurrency market, Bitcoin is trading around $100,600 after reaching an intraday peak of $101,884. Market analysts are interpreting the fluctuations. Mudrex CEO Edul Patel noted that Bitcoin is attempting to remain above $100,000, with a resistance level at $103,500, while supporting the level around $98,400. Giottus CEO Vikram Subburaj indicated that Bitcoin's RSI value is 77, signaling overbought conditions, and suggested that if the $100,000 support holds, a weekly target of $105,000 could be feasible.
Market analysts point out that Bitcoin has seen significant growth since Donald Trump’s presidential victory, and the relaxation of pressures on cryptocurrencies by the Joe Biden administration has further strengthened its position. Bitcoin has achieved up to a 50% increase so far, while Ethereum has attracted $2.4 billion in investments.
Short-term Expectations for the Crypto Market Avinash Shekhar, Co-Founder of Pi42, stated that Bitcoin is exhibiting "bullish momentum" due to macroeconomic data and signals of Fed rate cuts. He predicts that this optimism in the crypto market might lead Bitcoin to target levels of $112,000 and $125,000. In the short term, a resistance level at $104,088 may limit volatility.
Shekhar also notes that, in addition to Bitcoin, cryptocurrencies such as Ethereum, XRP, and Dogecoin could be experiencing upward movements. Ethereum is expected to target $4,500 if it breaks above $4,000, while XRP is anticipated to reach $3.50. Additionally, Dogecoin's exit from the oversold region may lead to a broad rally among altcoins, helping to maintain a positive market sentiment.