Bitcoin (BTC) achieved a new all-time high of over $106,000 in early Asian trading before falling to $104,500 due to concerns about an upcoming U.S. Federal Reserve (Fed) rate cut. The Fed is expected to lower the benchmark borrowing rate by 25 basis points to a range of 4.25% to 4.5%, marking a total easing of 100 basis points since September.
However, there are concerns that the Fed’s accompanying commentary may dampen expectations for further easing, potentially reducing the bullish impact of the rate cut. The Fed will announce its rate decision, the dot plot (comprising interest rate projections and economic forecasts) on December 18 at 14:00 ET.
If the projections show slower or fewer rate cuts, Treasury yields and the dollar may continue to rise, making it harder for risk assets, including BTC, to stay strongly bid. However, seasonality is bullish for BTC, and with President-elect Trump sending positive regulatory signals to crypto, a potentially hawkish Fed may not have a long-lasting impact on the cryptocurrency.
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<p>The post Bitcoin Soars to $106,000 Amid Fed Rate Cut Anticipation first appeared on CoinBuzzFeed.</p>
