On December 12, Bitcoin exceeded $100,000 again, driven by U.S. inflation data and Fed rate cut expectations, boosting major altcoins like Ethereum and Cardano along with meme coins such as Dogecoin. The total market cap grew by 5.89% as traders anticipated policy decisions from the Federal Reserve.

On December 12, Bitcoin once again exceeded the $100,000 threshold, propelled by the latest U.S. inflation figures and speculation regarding an imminent Federal Reserve rate cut. Following an all-time high of $103,800 earlier in the month, Bitcoin faced challenges in sustaining its value above $100,000 due to profit-taking. However, positive sentiment surrounding potential rate cuts helped boost Bitcoin’s value by nearly 4%, bringing it to $100,665 at the time of writing.

The consumer price index for November reflected a 0.3% increase month-over-month and a 2.7% annual rise, meeting expectations and igniting anticipation for the Federal Reserve’s decision at its upcoming December meeting. Avinash Shekhar, the Co-Founder and CEO of Pi42, noted Bitcoin’s resurgence past the $100,000 mark, demonstrating bullish momentum influenced by macroeconomic indicators and signaling possible interest rate reductions. He expressed optimism that Bitcoin could target $112,000, with a further ascension towards $125,000.

The altcoin market also experienced significant gains, with the global cryptocurrency market cap rising by 5.89% to approximately $3.66 trillion, as reported by CoinMarketCap. Bitcoin held a market share of 54.7%. Major altcoins followed suit, with Ethereum gaining 6.77%, XRP climbing 3.94%, Solana increasing 4.95%, and Cardano surging remarkably by 14.11% within a 24-hour period. Meme coins also saw upward movements, with Dogecoin rising nearly 6% and Shiba Inu increasing by almost 9%.

This comprehensive rally across the cryptocurrency market illustrates the profound impact of macroeconomic factors, such as inflation data, on trader sentiment as they look forward to the Federal Reserve’s forthcoming policy decisions.

The recent surge in Bitcoin’s value can primarily be attributed to favorable economic indicators, particularly in relation to inflation. As the Federal Reserve prepares for its monetary policy meeting, speculation surrounding interest rate cuts is escalating. The consumer price index showing stable inflation has rekindled investor confidence, leading to an upswing in Bitcoin and consequently the broader cryptocurrency market. Understanding these economic drivers is essential to grasp the current landscape of cryptocurrency valuations.

In conclusion, Bitcoin’s resurgence above the $100,000 mark is a direct result of encouraging U.S. inflation data and the prospect of Federal Reserve rate cuts. This has not only bolstered Bitcoin but also led to significant gains in the altcoin sector and meme coins. The cryptocurrency market’s recovery reflects a strong correlation with macroeconomic factors, as traders continue to respond to evolving policy expectations.

Original Source: www.indiatoday.in

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