Stay up to date with the CriptoTendencia WhatsApp channel: Instant news about Bitcoin, Altcoins, DeFi, NFT, Blockchain and Metaverse. Subscribe!
The Federal Open Market Committee (FOMC) will hold its last meeting of 2024 on December 17-18. Officials are expected to implement a new cut of 25 basis points in the interest rate, which would allow a greater flow of capital into financial markets. Will this be the catalyst that will take the price of Bitcoin to $100,000?
Since Donald Trump won the presidential elections in the United States on November 5, the crypto market rally has been enormous. Prices of major cryptocurrencies are experiencing significant returns and many are expecting an even better 2025. This reality is exemplary in Bitcoin, which rose 40% over the last month.
However, the price of the largest Cryptocurrency faces stiff resistance at $100K. Since last November 22, when BTC hit its most recent all-time highs at $99,662, the currency has had difficulty returning to that ground.
In several attempts, the price was rejected and now seeks to consolidate above $95,000 per token. The psychological barrier that $100,000 represents now becomes the main point of concern for short-term investors.
The psychological barrier of $100,000 has considerable strength among BTC investors. Source: CoinMarketCap
Will Bitcoin price reach $100,000 before the end of the year?
The crypto community seems confident that the price of Bitcoin will reach $100,000 before the end of the year. However, the psychological barrier that price represents seems too strong at the moment. In that case, a catalyst is required that is capable of motivating investors to accelerate their capital transfers to the token.
As already mentioned, everything indicates that the Federal Reserve will proceed with a new cut in the price of money of 25 basis points. This would leave the rate in the 4.25-4.5% range. Generally, rate cuts translate into improvements for financial assets such as stocks and cryptocurrencies.
This is because greater capital flows are freed up for these equity assets. At this time, it seems almost certain that the Fed will carry out a new cut, judging by the statements of some officials. This Monday, Fed Governor Christopher Waller highlighted that possibility and said that he himself supported it. This caused the odds of cuts to increase to 72.5% on the CME FedWatch.
Notably, Bitcoin spot ETFs also experienced positive inflows this Monday, with $353.6 million, according to Farside. As you can see, optimism in the crypto sector is strong, but so far not enough to break the $100K resistance. The rate cut seems too predictable to constitute a catalyst, at least from the current perspective.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
