Bitcoin Surges Past $100K Amid Fed Rate Cut Speculations; Major Altcoins Rally
Bitcoin has reclaimed the $100,000 mark, boosted by expectations of a Federal Reserve rate cut following U.S. consumer price index data. Major altcoins like Chainlink and Sui surged, contributing to a 5.38% increase in the global cryptocurrency market cap, which reached approximately $3.64 trillion. Bitcoin’s market cap is now nearly $2 trillion, marking a significant recovery from previous lows.
Bitcoin has regained the $100,000 threshold, trading at $100,935 after a significant rally, fueled by market optimism concerning a potential rate cut by the Federal Reserve. According to the CME FedWatch tool, the likelihood of a 25-basis-point cut has surged to 99%, following a 0.3% month-on-month increase in the U.S. consumer price index (CPI) for November. This news has contributed to notable increases in the prices of other cryptocurrencies as well, with Ethereum rising to $3,919, and Bitcoin hitting an intraday peak of $101,913.
The cryptocurrency market is witnessing a considerable bullish sentiment, with major altcoins reporting substantial gains. Chainlink surged by 24%, while Sui experienced the most remarkable increase at 29%, largely due to strategic institutional partnerships and wallet integrations. Overall, the global cryptocurrency market capitalization has climbed approximately 5.38% over the past 24 hours, reaching around $3.64 trillion. Bitcoin’s market cap now stands at $1.996 trillion, though transaction volumes have decreased by 18.59%, bringing them to $81.25 billion.
The surge in Bitcoin’s price, along with other cryptocurrencies, can be attributed to favorable economic indicators that suggest a potential easing of monetary policy by the Federal Reserve. The CPI data released showed a modest increase, aligning with analysts’ expectations, thereby elevating market confidence regarding a future rate cut. Cryptocurrencies are known for their volatility, and such news often triggers rapid price movements. Additionally, investor sentiment and technological advancements in the broader crypto sector significantly drive price changes.
In summary, Bitcoin’s recovery to the $100,000 mark highlights a positive shift in market sentiment driven by anticipated changes in monetary policy. The overall cryptocurrency market is thriving, with significant gains across multiple altcoins. The potential for further upward movement in Bitcoin and its peers remains strong, particularly if key levels of support are maintained, coupled with stable macroeconomic conditions.
Original Source: m.economictimes.com
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