Bitcoin recently reached a record high of over $108,000, but then dropped to around $104,800. Many traders are waiting to see what the Federal Reserve will do with interest rates and are feeling positive after President-elect Donald Trump showed support for cryptocurrencies.
He has promised friendly rules to help make the US a leader in the crypto world and even suggested the idea of a national Bitcoin reserve. Also, MicroStrategy, a company that buys a lot of Bitcoin, is going to be added to the Nasdaq 100 Index, which makes people excited about its stock price going up.
As for the Federal Reserve, people expect them to lower interest rates by a quarter-point soon, but there’s still some uncertainty about what will happen next year due to strong US economic growth and inflation concerns from Trump’s plans.
Experts believe this week’s Federal Open Market Committee (FOMC) meeting will add to market excitement. After that, they expect calmer weeks, which could help Bitcoin’s momentum grow as the holidays approach.
Since Trump’s election win on November 5, Bitcoin has shot up over 55%. Investors are pouring money into US exchange-traded funds that deal with Bitcoin, despite warnings about Bitcoin’s past price swings.
On the Deribit options exchange, many traders expect Bitcoin to hit $120,000 based on their bullish bets. Yet, some investors are being careful about jumping into Bitcoin right now since its price has already fluctuated a lot recently.
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