Rate Cut Expectations Give Bitcoin a Boost; New BTC Price Prediction
Bitcoin moved higher this week after a rough November and could perform well over the weekend thanks to Fed cut news.
Quick overview
- Bitcoin rose to $91,468 after discussions of a potential Federal Reserve rate cut, but remains below October highs.
- The cryptocurrency gained 10.44% over the past week, showing signs of recovery after a prolonged downward trend.
- Market optimism surrounding a rate cut could lead to significant movements in Bitcoin and other cryptocurrencies this weekend.
- Despite short-term bullish trends, analysts express concerns about Bitcoin's long-term momentum and predict it may struggle to surpass $95K.
Bitcoin climbed to $91,468 (BTC/USD) on Friday after Federal Reserve members talked about the potential for a December rate cut, but the coin remains well below October highs.
Over the last week, Bitcoin (BTC) has gained 10.44%, a dramatic shift from its lengthy downward spiral. The crypto token is also up 0.52% for Friday so far and could climb much higher over the course of the day. As the stock market closes down for the weekend, the crypto market has an opportunity for big moves.
BTC/USDAfter a sharp correction last week, Bitcoin is in recovery and drawing interest back at a crucial time when investors’ eyes will move from the stock market to the crypto market. We could see a surge in Bitcoin and other cryptos this weekend as November closes off.
Bitcoin Gets a Boost from the Fed
One of the strongest supporting factors for Bitcoin’s resurgence is the possibility of a Federal Reserve interest rate cut in the coming weeks. Fed members have been discussing that possibility, and the market is optimistic that a cut will happen soon.
The labor market is weak right now, which is usually an indicator that the Fed will at least consider a rate cut to boost that part of the economy. With inflation remaining relatively flat lately, the market is ripe for a new cut that should not have much of a negative impact on consumer prices.
There is some worry that the bull market for Bitcoin is over, though, after a very short run. Throughout the month of November, Bitcoin trended downward, falling as low as $82K. The coin has struggled to slowly regain its value, and BTC has mostly been bullish since November 22nd.
Comparing that performance to how the coin has done throughout the last two weeks, we could be seeing the end of the upward shift and the beginning of slowdown for the coin as it starts to retreat. The 200-day average for Bitcoin has turned downward, which is cause for concern among analysts who earlier predicted that the coin would surpass $100K soon during its bull run.
Bitcoin spent a lot of time below its 200-day moving average, which means it is less likely to remain bullish and will have trouble picking up momentum. We have seen evidence of that already since the coin has moved upward slowly from its November low point. As bullish as Bitcoin looks for the short-term, the long-term picture is bleaker. We expect Bitcoin will not move past $95K this weekend and will begin its retreat later today, though it may get a boost when a new rate cut hits.
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