Bitcoin started strong on Fed Week.

Bitcoin Started the Fed Week on a High Note

Bitcoin has drawn attention by starting the new week above $90,000. The leading cryptocurrency, which gained about 3% in value within 24 hours, was trading around $92,000 at 12:00 PM (TSI), showing an increase of approximately 8% since December 1st.

Positive Impact on the Crypto Market

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

Fed's Interest Rate Policy and Market Expectations

Bitcoin had remained within a narrow trading range following the liquidation of $19 billion worth of leveraged positions at the beginning of October. Due to concerns about the Fed's future interest rate cuts, a cautious sentiment has been observed in the crypto markets. Markus Thielen, President of 10x Research, stated that Fed Chairman Jerome Powell's indication of a “data-dependent easing” has led to a loss of momentum in the crypto markets.

Upcoming Rate Cuts and Crypto Markets

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

Future Expectations

At the same time, Henrik Andersson from Apollo Capital noted that the rate cut is currently priced into the markets, emphasizing that the messages the Fed will convey in the coming periods will be significant. Anticipation of more rate cuts until 2026 is expected to have a positive impact on risky assets.

What Do Technical Indicators Say?

Analysts express that the rising trend of the technical indicator called “vitality” signals a bull rally. A TXMC analyst stated that this indicator gained upward momentum despite low prices, indicating a strong demand for spot Bitcoin.

Note that the information contained here is not investment advice.