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K33 Research: It is expected that this week's FOMC meeting will intensify market volatility, laying the foundation for Bitcoin to rise in the following weeks

K33 Research: It is expected that this week's FOMC meeting will intensify market volatility, laying the foundation for Bitcoin to rise in the following weeks

Bitget2024/12/18 01:45

Bitcoin took a breather after first breaking through $108,000, as traders awaited expectations of the Federal Reserve's interest rate cut and assessed the bullish sentiment brought about by President-elect Trump's support for cryptocurrencies. On Tuesday, Bitcoin touched $108,315 and has currently fallen back to around $106,000. CoinGecko data shows that in this rebound, the total market value of cryptocurrencies is close to 4 trillion dollars.

The market generally expects the Federal Reserve to lower interest rates by 25 basis points again on Wednesday. However, due to strong U.S economic growth and inflation risks brought about by the broader agenda of the president-elect, the policy outlook of the Federal Reserve is not clear.

Analysts Vetle Lunde and David Zimmerman from K33 Research wrote in a report: "We expect this week's FOMC meeting will intensify market volatility. After the FOMC meeting ends, macroeconomics will have a few calm weeks which may lay foundation for Bitcoin to further gain momentum during holiday season."

Since Trump won presidential election on November 5th , Bitcoin has risen more than 55%. The highest concentration of open contracts betting on price increases on Deribit are at an execution price of $120,000. Market analyst Tony Sycamore from IG Australia Pty said there are reasons to be cautious about chasing highs at current levels.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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