Bitcoin Surges to $94,000, Hitting a Three-Week High
After a series of lukewarm economic data releases, the probability of a 25-basis-point rate cut has climbed to 89%.
Quick overview
- Bitcoin has risen 17% since hitting a low of $80,843 on November 21, currently trading at $94,245.
- The cryptocurrency market is generally up, with Ethereum increasing by 8.8% and several altcoins also showing gains.
- Speculation around the U.S. Federal Reserve's interest rate decisions is influencing Bitcoin's outlook, with a high probability of a rate cut.
- Experts caution that Bitcoin's support level at $86,000 is critical, as falling below it could lead to further declines.
The leaders of the U.S. central bank will set the course for the world’s largest cryptocurrency, which has gained 17% since hitting a low of $80,843 on November 21.
The cryptocurrency market is trading higher on Tuesday. Bitcoin (BTC) is up 4.5% to $94,245, according to Binance, and still hasn’t found stability since the start of December. Ethereum (ETH) is also rising, up 8.8% to $3,390.55.
Altcoins are mostly in the green as well. Lido Staked Ether (STETH) leads with an 8.7% jump, followed by Solana (SOL) with 6.1%, Ripple (XRP) with 4.4%, and BNB with 3.2%.
Trump and the Fed to shape Bitcoin’s outlook
In recent weeks, speculation has intensified around the U.S. Federal Reserve’s next move on interest rates. The Fed’s two-day meeting begins this Tuesday, December 9.
After a series of lukewarm economic data releases, the probability of a 25-basis-point rate cut has climbed to 89%. Still, the crypto market is trading cautiously, as the outlook remains uncertain until the meeting concludes.
At the same time, actions taken by U.S. President Donald Trump will also influence the direction of the leading cryptocurrency. Beyond the rate-cut decision itself, if the White House signals a more crypto-friendly stance, concerns over aggressive regulation would diminish, potentially encouraging funds and institutions to warm up to the sector.
Bitcoin’s trajectory will ultimately depend on several factors. The Fed’s interpretation of labor-market data, among other indicators, may determine whether policymakers feel pressure to cut soon—or not at all. The first scenario is generally supportive of risk assets like Bitcoin, though it also raises the specter of recession, which could spook investors.
Experts warn that the $86,000 level is a key support; falling below it could push prices down toward $80,000.
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