The Federal Open Market Committee (FOMC) will hold its last meeting of 2024 on December 17-18. Officials are expected to implement a further 25 basis point interest rate cut, which would allow for more capital flows into financial markets. Will this be the catalyst that will push Bitcoin price to $100,000?
Since Donald Trump won the US presidential election on November 5, the crypto market has been on a massive rally. Prices of major cryptocurrencies are experiencing significant gains and many are expecting an even better 2025. This reality is exemplary for Bitcoin, which has risen by 40% over the past month.
However, the price of the largest cryptocurrency faces stiff resistance at $100K. Since November 22, when BTC touched its most recent all-time highs at $99,662, the coin has struggled to get back to that level.
The price was rejected on several attempts and is now seeking to consolidate above $95,000 per token. The psychological barrier represented by $100,000 is now becoming the main point of concern for short-term investors.
Will Bitcoin Price Hit $100,000 Before the End of the Year?
The crypto community seems confident that the price of Bitcoin will reach $100,000 before the end of the year. However, the psychological barrier that this price represents seems too strong at the moment. In that case, a catalyst is required that is capable of motivating investors to accelerate their capital transfers to the token.
As mentioned above, the Fed is expected to proceed with a further 25 basis point cut in the rate of money. This would leave the rate in the 4.25-4.5% range. Generally, rate cuts translate into improvements for financial assets such as stocks and cryptocurrencies.
This is because more capital flows are being released into these equity assets. At the moment, it seems almost certain that the Fed will go ahead with another cut, judging by the statements of some officials. On Monday, Fed Governor Christopher Waller stressed this possibility and said that he himself supported it. This caused the probability of cuts to rise to 72.5% on the CME FedWatch .
It is worth noting that Bitcoin spot ETFs also saw positive inflows on Monday, with $353.6 million, according to Farside. As can be seen, the optimism in the crypto sector is strong, but so far not enough to break the $100K resistance. The rate cut seems too predictable to be a catalyst, at least from the current perspective.