Bitcoin Price Anticipates Federal Reserve Rate Cut, Eyes $100,000 Mark

The Bitcoin price is under close watch as markets await a potential Federal Reserve rate cut that could spark fresh momentum. The CME FedWatch Tool indicates a 74.5% possibility of a 0.25% rate cut by the Federal Reserve at its forthcoming December 18 meeting.

This move, if it materializes, would lower the federal fund’s target rate to a range of 4.25% to 4.5%, widely perceived as a dovish signal that could bolster the price action of Bitcoin and altcoins. The Fed’s anticipated shift follows months of inflation data that suggests prices are stabilizing.

Federal Reserve Officials Weigh in on Potential Rate Cut

Federal Reserve Governor Christopher Waller recently voiced support for the cut, citing downward inflation trends. Similarly, Federal Reserve officials, including Raphael Bostic, have hinted at an open mind on whether the bank should cut rates. Market expectations for such a cut have steadily risen in recent weeks.

The Bitcoin price, which saw a massive uptrend in November, hit the $99,655 resistance on the path to $100,000 before facing a pullback driven by profit-taking trades from long-term holders. BTC now changes hands at $96,812 at press time, up 1.52% over the past 24 hours.

Expert Insights: A Dovish Fed Move Could Propel Bitcoin’s Price

“Freed-up liquidity often translates to more fiat in circulation, driving inflation concerns and prompting investors to seek stable alternatives like Bitcoin.”

Maksym Sakharov, co-founder of WeFi, notes that rate cuts reduce borrowing costs and increase liquidity, conditions that historically favor Bitcoin due to its inflation-hedging appeal. He adds that the limited supply created by the halving, coupled with increased accumulation, could drive a breakout above $100,000.

Sakharov also points to the optimism surrounding pro-crypto policies from U.S. President-elect Donald Trump, a sentiment fueling market momentum. He emphasizes that the combined impacts of incoming rate cuts and sustained BTC accumulation by institutional investors can propel the coin’s price above the $100,000 mark this year.

Key Factors to Watch: Upcoming Employment Data and Holiday Sales Trends

As the Federal Reserve’s meeting approaches, scheduled for December 17 and 18, market participants also have their eyes set on other economic indicators that could determine price action. Upcoming employment data and holiday sales trends will further inform the central bank’s decision. However, any unexpected signs of persistent inflation could temper the Fed’s dovish pivot and dampen Bitcoin’s bullish outlook.

For the latest news and updates on Bitcoin and the cryptocurrency market, stay tuned to Global Crypto News.

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