Can US FOMC Hinder Bitcoin Price Rally To $100K?

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As a seasoned researcher with a decade-long career in financial markets and a keen interest in the crypto sphere, I find myself intrigued by this fascinating dance between traditional finance and the burgeoning digital economy. The upcoming US FOMC meeting and Jerome Powell’s speech have always been significant events, but their impact on Bitcoin seems to be reaching new heights under the current circumstances.

Cryptocurrency enthusiasts are anxiously looking forward to the U.S. Federal Open Market Committee (FOMC) meeting and Jerome Powell’s speech, as optimism builds following Donald Trump’s election victory. Investors are placing their bets on a 25 basis point reduction in interest rates from the Fed today, with many expecting these events to drive Bitcoin‘s price up towards $100K. Yet, some have sounded alarms about the possibility of increased market volatility due to these developments.

So, here we explore the potential factors that could impact the BTC rally in the coming days.

Will US FOMC Trigger Volatility In The Crypto Market?

Market players are preparing for the upcoming Federal Open Market Committee (FOMC) meeting in the U.S., which may provide insights into the current state of the American economy. Moreover, the decision regarding interest rate cuts could significantly influence market mood. Many analysts anticipate a 0.25% reduction in rates by the U.S. central bank. Based on the CME FedWatch Tool, there is a 99% likelihood of a 25 basis point cut by the central bank, with another potential announcement scheduled for December.

As an investigator delving into the realm of cryptocurrencies, I’ve noticed a certain apprehension among some participants who are holding back, yearning for more lucid insights regarding market tendencies. To provide context, numerous crypto market analysts foresee possible volatility following the speech by Fed Chair Jerome Powell.

Regarding a recent post, the crypto market analyst and Bitcoin advocate AlphaBTC expressed a measured optimism, anticipating a reduction of 0.25% by the Federal Reserve. He underscored that the remarks of Jerome Powell will significantly influence investor sentiment in the near future. A hawkish stance could indicate growing concerns about recession, while a more accommodative approach may extend the “Trump Rally”.

Additionally, people will be keenly interested in Powell’s stance towards the recently elected U.S. President Donald Trump, since Trump has previously criticized the central bank on several occasions. At the same time, Elon Musk’s D.O.G.E. project is expected to focus on the U.S. Federal Reserve in the near future, which could boost market confidence. Furthermore, this move has ignited conversations about a potential surge in Dogecoin‘s value in the upcoming days.

Bitcoin Price Rally To $100K Imminent?

Despite predictions of temporary market fluctuations following the US FOMC meeting and Jerome Powell’s address, numerous cryptocurrency specialists are hopeful for a quick recovery. A number of analysts have expressed a positive view on Bitcoin’s price, predicting a clear regulatory landscape for crypto during Trump’s presidency.

Currently, the price of Bitcoin has increased by 1.5% to reach $74,828. Earlier today, it peaked at an all-time high of $76,460.15 within the last 24 hours. Furthermore, there’s been a nearly 4% increase in BTC Futures Open Interest since yesterday, suggesting that optimistic feelings about the market are prevalent.

Furthermore, the speculation surrounding the prospect of a Bitcoin Strategic Reserve in the U.S. has ignited market enthusiasm. With Wyoming Senator Cynthia Lummis reaffirming her view on treating Bitcoin as a strategic reserve and Donald Trump expressing his support during his presidential campaign, there is much anticipation for a potential price surge.

Additionally, a recent analysis by Matrixport indicates a possible surge in Bitcoin’s value up to $100,000. This prediction is based on potential changes such as the departure of Gary Gensler from the US SEC and the establishment of a Bitcoin US Strategic Reserve, which could lead to Bitcoin reaching this significant price point soon.

Can BTC Face Selling Pressure Ahead?

It’s possible that decisions made by the Federal Open Market Committee (FOMC) in the U.S. could cause fluctuations in the financial markets, potentially affecting the Bitcoin price surge currently underway. Additionally, it seems that more investors are now favoring altcoins such as Ethereum over Bitcoin, leading to market concerns. This increasing preference for top altcoins appears to be influencing the attitudes of some traders negatively.

Furthermore, in a recent update from CryptoQuant, its founder and CEO, Ki Young Ju, proposed a possible Bitcoin selloff in the near future. He pointed out that new investors could view the current surge as an opportunity to realize their profits, which may dampen a strong increase in Bitcoin’s price. In simpler terms, Ki Young Ju expressed that new investors might consider cashing out during this rally, potentially slowing down Bitcoin’s price growth.

Initially, new cryptocurrency investors tend to keep their Bitcoin (BTC) during market downturns, accepting losses. However, after approximately two years, they usually sell when the discomfort lessens. That moment has arrived now. It might increase by around 30-40%, but not like the staggering 368% rise we experienced from $16K. At this point, it seems prudent to contemplate a gradual selling strategy rather than making a full investment, in my opinion.

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2024-11-07 20:12