Bitcoin‘s price is at $43,100 at the time the article was prepared, showing signs of breaking away from the negativity at the start of the week. Investors were worried about further declines before the Fed meeting. However, inflation came in as expected and the Producer Price Index (PPI) data was quite positive. The relatively optimistic comments by the Fed Chairman were the icing on the cake for the rising market.
Why is Bitcoin Rising?
This month, the Fed conducted several meetings with companies wanting to issue a spot Bitcoin ETF. Unlike previous rejections, we now see the securities regulator moving away from a negative approach. Moreover, Fed Chairman Powell, in his remarks a few hours ago, spoke positively about the rate cuts planned for next year.
The 2024 interest rate expectations of the members are also positive, and according to FedWatch data, expectations of more than 100 basis points reduction are solidifying. All these are factors increasing optimism for the coming year. We may see the continuation of the rise as Asian markets open in the coming hours.
The Current State of Cryptocurrencies
The cumulative value of cryptocurrencies has once again crossed the threshold of $1.6 trillion, and altcoins are becoming more active. The ‘king’ cryptocurrency’s daily gains of 5% could trigger faster recoveries in altcoins that have bounced back from most resistances.
Furthermore, Powell stated for the first time that significant easing should start before reaching the 2 percent inflation target. This has the potential to keep investors’ appetite for risk high until January 10. Indeed, the 2 percent increase in the spot price of Gold also occurred as a result of this.
Over the past few months, cryptocurrencies that have been positively diverging like SOL Coin and assets that have become active in recent days such as TIA, AVAX, are expected to experience rapid rises in the next 48 hours. In the last 24 hours, the altcoins with the most gains were BONK, ADA, BEAM, and WOO. Except for ADA Coin, others are recovering as a result of listings and partnership news.
It’s important that the daily close is above $43,000 for BTC in about 1.5 hours. Investors may be facing sleepless nights and potentially the beginning of new bull markets.
