Bitcoin made a strong start on Fed week.

Bitcoin Starts the Fed Week in the Green

Bitcoin has made a splash at the beginning of the new week, starting above $90,000. The leading cryptocurrency is trading around $92,000 at 12:00 PM Turkish time, having gained about 3% in value within 24 hours, and showing approximately an 8% increase since December 1st.

Positive Impact on the Crypto Market

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

Fed's Interest Rate Policy and Market Expectations

Bitcoin had been trading in a narrow range following the liquidation of $19 billion in leveraged positions at the beginning of October. Due to concerns over potential interest rate cuts from the Fed, the crypto markets are experiencing a cautious trend. Markus Thielen, the 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.

Future Interest Rate Cuts and Crypto Markets

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

Expectations for the Future

Henrik Andersson from Apollo Capital noted that the current interest rate cut is already priced in the markets, while emphasizing that the messages from the Fed in the coming periods will be crucial. Anticipating further interest rate cuts by 2026 could have a positive effect on risky assets.

What Do Technical Indicators Indicate?

Analysts point out that the rise of the technical indicator known as "vitality" suggests a bullish rally. A TXMC analyst mentioned that this indicator has gained upward momentum despite low prices, indicating strong spot Bitcoin demand.

Remember, the information provided here does not constitute investment advice.