Bitcoin regains $91,000 mark amid hopes of Fed rate cut
What's the story
Bitcoin, the world's largest cryptocurrency, has shown a slight recovery in value. The digital asset was trading at around $91,114 this morning, marking an increase of 1.86% from the previous trading session. This comes as the traders are hopeful for a rate cut by the US Federal Reserve later this week.
Market trends
Bitcoin's recent performance and market expectations
Bitcoin's value has been on a rollercoaster ride, hitting a high of $126,000 in October 2024 and then crashing to a low of $75,000 in April. Today, the cryptocurrency fell to $89,326 during the morning session but later recovered to trade above the $91,000 mark. Analysts expect that if Bitcoin breaks above the $91,000-$92,000 range, it could gain momentum. However, dips toward $88,000 may still attract buyers unless macro volatility increases significantly.
Rate impact
Federal Reserve's rate cut decision and market volatility
Traders are currently pricing in an 88.4% chance of a December rate cut by the Federal Reserve. Piyush Walke, Derivatives Research Analyst at Delta Exchange, advised caution among traders as potential price spikes could occur this week ahead of the US interest rate decision. "With several major data releases scheduled, market volatility is likely to persist," Walke said.
Crypto response
Ethereum and other cryptocurrencies respond to market fluctuations
Ethereum has also seen a sharp rise from $2,900 and is now trading at $3,112. The key level for Ethereum is $3,250, which has served as resistance several times. Other tokens have also witnessed volatility with BNB up 1.32%, SOL up 0.81%, and ADA up 1.50%. Meanwhile, USDC fell by 0.01% in the last 24 hours.