Fed Decision Looms, Setting Stage for Possible Bitcoin Rally
Bitcoin is inching closer to $118,000 as the market awaits a crucial Fed decision. Expectations are high that the Federal Reserve will slash interest rates by 0.25%. If this happens,it could spark a significant rally for the crypto.
Recently, Bitcoin has climbed over 5% in anticipation. A rate cut would weaken the dollar, benefiting option assets like Bitcoin. Reuters noted the dollar already hit a four-year low.
the crypto market sees this as a positive. More investors are pouring money into cryptocurrencies.As an inevitable result, the total market value surpassed $4 trillion, now standing at $4.16 trillion.
Financial expert Tom Lee from BitMine predicts a big boost for Bitcoin and Ethereum. He thinks prices will rise sharply over the next three months.
Currently, Bitcoin is valued at $117,319, up 1.23%. It bounced back from the $116,200-$116,300 range, climbing over $117,200. This jump suggests strong buyer interest.
- Bullish sentiment is supported by the Relative Strength Index’s position.
- If the Fed cuts rates as expected, Bitcoin might break $118,000.
- A more cautious approach from the Fed could send it back towards $116,500-$116,700.
If history repeats, a rate cut could propel Bitcoin higher. In December 2024, a Fed rate cut fueled crypto excitement.
