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The next interest rate decision in the United States is Wednesday, December 18.
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There is a 96% chance of a 25 basis point rate cut, according to CME.
The price of Bitcoin (BTC) has reached $103,000 (USD) today, while a significant event is expected for the markets this week. This is the decision on interest rates in the United States, which will be announced on Wednesday, December 18.
“Trader narratives show expectations that the bullish rally will continue with likely rate cuts,” points out the analysis company Santiment.
According to the CME Group survey, 96% of experts expect a rate cut of 25 basis points to remain at 425-450 basis points. Meanwhile, the remaining 4% expect them to remain unchanged at 450-475 basis points.
According to Santiment, such a forecast suggests that the US and global economy could prosper with lower interest rates. “Cryptocurrencies, closely linked to stock markets, have already reacted positively and can gain even more once the cuts are confirmed next week,” he adds.
It also highlights that US employment reports are aligning with economists’ expectations and the Nasdaq 100 (NDX) surpassing USD 20,000 for the first time. With such a scenario, “Cryptocurrency prices are experiencing a resurgence similar to last November,” highlights the analysis company.
The odds of a 25 basis point cut rose after the consumer price index (CPI) was released on Wednesday.. This metric, which showed an annual increase of 2.6% to 2.7%, “indicates to traders that the United States is likely to lower rates again next week,” said trader Brian (brianq).
Preview of the next interest rate decision in the United States. Fountain: CME Group.
The bitcoin market and cryptocurrenciesin correlation with stocks in the United States, has had an immediate positive reaction to the publication of the CPI. “And it will probably benefit even more once the rate cuts become official next week,” the trader said.
Bitcoin is approaching its all-time high price
The price of bitcoin It recovered USD 100,000 before the publication of the CPI of the economic power and has reached USD 103,000 today. In this way, it is approaching the historical maximum of USD 103,600 that it registered at the beginning of December, as shown below.
The cuts of interest rates They imply greater liquidity available in the economy, so markets tend to rise accordingly. Furthermore, given that a large drop is not predicted, it reflects expectations that the economy does not need a harsh measure to boost itself, something that explains the current optimism.
In this sense, with the possibility of a rate cut still standing, bitcoin could continue the rise to new all-time high prices. In fact, as CriptoNoticias reported, this upward trend, which began a month ago with the electoral victory of Donald Trump, may have been slowed down recently awaiting the decision.
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