Bitcoin made a strong start in the Fed Week.

Bitcoin Starts the Fed Week on a Positive Note

Bitcoin has made a strong start to the new week, trading above $90,000 and attracting attention. After gaining 3% in 24 hours, the leading cryptocurrency was trading around $92,000 at 12:00 PM Istanbul time, showing an approximate increase of 8% since December 1.

Positive Impact on the Crypto Market

This upward trend in Bitcoin has positively reflected on the overall crypto market. High market cap altcoins such as Ethereum, XRP, Solana, and Dogecoin have also gained between 2% and 4%. As a result of these developments, the total cryptocurrency market cap has reached $3.12 trillion.

Fed's Interest Rate Policy and Market Expectations

Bitcoin had remained in a narrow trading range following the liquidation of $19 billion in leveraged positions at the beginning of October. Due to concerns about future interest rate cuts from the Fed, there is a cautious trend in crypto markets. Markus Thielen, Head of 10x Research, stated that Fed Chairman Jerome Powell's indication of a "data-dependent easing" has caused the crypto markets to lose momentum.

Upcoming Interest Rate Cuts and Crypto Markets

The Federal Open Market Committee (FOMC) is expected to announce a 0.25% interest rate cut following its meeting on Wednesday. Thielen believes that the Fed will favor a cautious approach, which could put pressure on the markets.

Future Expectations

At the same time, Henrik Andersson from Apollo Capital noted that the interest rate cut is currently priced into the markets, emphasizing the importance of the messages from the Fed in the upcoming periods. Expecting further rate cuts until 2026, it is anticipated that this could have a positive impact on risk assets.

What Do Technical Indicators Say?

Analysts indicate that the rise of the "vitality" technical indicator suggests a bull rally. TXMC analyst pointed out that this indicator has gained upward momentum despite low prices, indicating strong spot Bitcoin demand.

Remember, the information provided here is not investment advice.