Bitcoin $94,821.2 price After today’s US data, it returned to $ 93,000 and the slow rise turned into a rapid decline. US Dollar Index is running to new highs. Cryptocurrency investors began to experience days reminiscent of bear markets after the $108 thousand BTC ATH.
Fed and Cryptocurrencies
The market expectation for the Fed meeting to be held on January 29 is that there is a 97% probability that interest rates will be left constant. To make matters worse, market expectations for the first discount were postponed until September. We heard in December that the Fed could make 2 interest rate cuts in 2025. As if that wasn’t depressing enough, now with strong employment data, market expectations have dropped to a single cut, as you can see below.
cryptocurrencies The only good thing about this is that fear and panic peak as the worst-case scenario is priced in. Markets tend to return from the bottom in these cases, and if BTC can maintain $ 91,500, a surprise upward phase may occur.
What Happens Now?
BTC and cryptocurrency Markets have now begun to accept a single interest rate cut for 2025. The upside of this is the fact that fewer things could be worse. Crypto could rise as more discounts begin to price in for this year if we see a decline in inflation in the coming months or data showing employment is being undermined.
In an environment where one of the worst-case scenarios is priced, it is positive that the BTC price can hold a key point such as $ 91,500. Some important events will occur next week that have the potential to reverse sentiment or increase pessimism.
For example, the US Producer Inflation data will come on January 14, and if it is announced below 3%, it will be in favor of cryptocurrencies. January 15 will be one of the most important events of January and we will see the arrival of US inflation data. The expectation here is 2.9% against the previously announced 2.7%. Core inflation is expected to remain constant at 3.3%. If the CPI comes in below expectations, this will support the markets greatly.
Since September 30 BTC price increased significantly. It made a new peak at $108 thousand. It is quite impressive that this rise was achieved despite the dollar index increasing by 10%. If it’s any consolation, DXY is doubling even though it’s up 10%. BTC price It indicates serious potential. With the interest rate cut forecasts getting stronger after some good inflation data, BTC may continue its target of 150 thousand dollars again. Based on the 110 limit, we will wait for DYX to return to closes below 108.5.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
