Key Insights
- •Bitcoin price added more than 2% amid a broader crypto market rally today.
- •The market is expecting a 25 bps Fed rate cut at the upcoming US FOMC later today.
- •Analyst predicts BTC USD to hit $100k amid expectations of a heightened volatile scenario in the market.
The broader crypto market stayed in the green today ahead of the Fed rate cut decision, sparking hopes of a continuing rally ahead.
The top players in the space, including Bitcoin price, have recorded robust gains and traded near the $93,000 mark at the time of writing.
However, the broader crypto market sentiment is still at the “fear” zone, suggesting a cautious stance of investors.
Amid this, investors are evaluating the potential of BTC USD price to hit $100,000 in the near future.
On the other hand, the institutions have also put their bets on Bitcoin price, as evidenced by the recent US Spot Bitcoin ETF fund flow data.
Despite this, some market experts still remained cautious on the potential future trajectory of the asset.
Historical data suggests that BTC USD price often faces highly volatile trading after the US FOMC rate cut decision.
In addition, some have warned that the Fed rate cut optimism might have already been priced in, while warning of another volatile scenario in the near future.
Bitcoin Price Soars Amid Institutional Bets
BTC price today was up around 2.5% and traded at $92,800, with its trading volume soaring 14% to $65 billion.
The soaring trading volume suggests that the market participants are actively putting their bets into the asset.
Over the past 24 hours, Bitcoin price has touched a high of $94,601, recovering from a low of $89,977.
Despite the recent gains, the crypto has offered a muted return in the weekly chart, while dropping nearly 13% over the past 30 days.
One of the prime reasons behind the recent rally could be the renewed institutional interest in BTC.
According to Farside Investors’ data, the US Spot Bitcoin ETF has recorded an inflow of $152 million on December 9, with Fidelity’s FBTC providing the biggest boost with $198.9 million influx.
This follows an outflow of $60.4 million on Monday. Meanwhile, it’s worth noting that the latest inflow comes despite a robust outflow of $135.4 million from BlackRock Bitcoin ETF (IBIT).
Can BTC USD Price Hit $100k Amid Fed Rate Cut Bets?
The recent surge in Bitcoin price ahead of the much-anticipated Fed rate cut later today has fueled optimism over a continuing rally to $100,000.
In addition, a recent analysis from the renowned expert Ali Martinez also suggested a possible rally to $100k in the near future.
However, the expert has warned that following the milestone, the crypto may witness a correction again to $80,000 support.
This has spooked traders over a continuing volatile scenario in the market, with BTC USD price likely to face volatile trading.
Meanwhile, historical data suggests that Bitcoin price often faces highly volatile trading after the Fed rate cut decisions.
According to the CME FedWatch Tool, the odds of a 25 bps Fed Rate Cut in December are now at 87%.
Although the lower rates usually help in risk assets like cryptocurrencies, investors have remained cautious.
For context, in a recent X post, analyst Ted has sparked discussions saying that the Fed rate cut optimism might have already been priced in, especially after the recent bounce to $94,000.
Considering all these factors, the investors are now eagerly waiting for the US FOMC and Fed Chair Jerome Powell’s speech.
Any hawkish comments from Powell could dampen the broader market sentiment while triggering another selloff in the broader financial market.