Crypto Market Soars: Bitcoin Nears $85,000 Amid Fed Cuts and Inflation Watch

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Crypto Market Soars: Bitcoin Nears $85,000 Amid Fed Cuts and Inflation Watch

Last week, the cryptocurrency market saw strong gains following the US presidential election results and the Fed’s rate cut. (BTC-USD) traded between $66,835 and $77,179, closing the week up 11.3% at $76,570. (ETH-USD) also surged, rising 30% to reach $3,200.

On Sunday, November 10, Bitcoin exceeded $80,000, setting a new all-time high and achieving nearly 20% growth in a week. Currently, Bitcoin trades at $84,520 with attempts to break the $85,000 mark, as the market awaits results from the upcoming Fed meeting.

Key Events and Market Indicators

In the coming week, the U.S. inflation report and speeches by Fed officials, including Chris Waller and Neel Kashkari, will be closely watched, with special attention on the consumer price index, which could impact future Fed rate decisions. Additional data on retail sales and the labor market are also under focus, as these indicators affect both dollar’s exchange rate and the cryptocurrency market.

Investor Sentiment and Market Volatility

As the Fed’s November meeting hasn’t brought all the expected data, the primary focus has shifted to the final meeting of the year on December 18. Fed Chairman Jerome Powell confirmed that the Fed intends to continue rate cuts until a neutral level, estimated at 2.9%, is reached. However, Powell hinted that as this level approaches, rate cuts may slow. A 65% probability suggests a one-step reduction, which could favor the dollar, while a two-step reduction would be more favorable for cryptocurrencies.

Short-Term Market Prospects

Next week, markets will closely track U.S. inflation data on Wednesday and retail sales on Friday. Current expectations for consumer prices remain neutral, with a forecast of 0.3% for the core indicator. Stronger-than-expected data would likely strengthen the dollar, while weaker data could weaken it.

Bitcoin and Ethereum, the two flagship cryptocurrencies, emerged from their consolidation phases following the U.S. election, reaching new highs. Bitcoin’s nearest support levels are $72,400 and $69,900, while Ethereum’s support zones are $2,840 and $2,650.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Crypto #Market #Soars #Bitcoin #Nears #Fed #Cuts #Inflation #Watch

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up