Central Bank Decision Expected to Impact Global Markets: Cryptocurrency Gains Momentum
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Federal Reserve Rate Cut Decision Looms as Bitcoin Reaches $105,000
Bitcoin has made a significant surge to reach the milestone of $105,004 amid expectations of a forthcoming rate cut by the Federal Reserve. This development has sparked concerns that the decision’s impact may be limited due to its already being priced into the market.
The cryptocurrency market has witnessed a 3.5% gain over the past 24 hours, with Bitcoin experiencing an impressive yearly growth of 140%. The Federal Reserve is widely anticipated to lower interest rates by 25 basis points this week, as suggested by CME’s FedWatch Tool, which assigns a 93.4% probability to this outcome.
In a statement, Luis Buenaventura, head of crypto at GCash, emphasized that the market has been preparing for such an event, effectively pricing in the expected rate cut. He noted that historical data suggests that Bitcoin typically experiences increased growth following a rate reduction, citing two-thirds of cases where it rises by 50% within a 60-day period.
In addition to this anticipated interest rate adjustment, market analysts are drawing attention to several other factors fueling the cryptocurrency market’s performance. These include steady spot ETF inflows and growing institutional adoption.
It is worth noting that the market has not only witnessed increased trading volumes but also demonstrated a rise in sustained participation from both retail and institutional investors. This suggests a maturation of the crypto ecosystem, which could further support Bitcoin’s dominance.
The current market trends suggest that there will be continued buying pressure across major exchanges, with order books displaying robust support at various price levels below current trading ranges.
This development is likely to shift attention towards the December FOMC meeting’s Summary of Economic Projections and Federal Reserve Chair Powell’s comments regarding future rate adjustments.
Source: blockonomi.com
