After the release of the U.S. Consumer Price Index (CPI) in November, U.S. stocks and crypto markets rose in response.
U.S. CPI rose 2.7% year-on-year in November, up from 2.6% in October, in line with market expectations. CPI rose 0.3% monthly in November, slightly higher than the 0.2% increase in the previous month. Among them, core CPI rose 3.3%, unchanged from October.
FedWatch Tool data shows the probability that the Fed will cut interest rates by 25 basis points next week has risen to more than 96%.
As of the close of U.S. stocks on Wednesday, the Dow initially closed down 0.2%, the S&P 500 rose 0.8%, and the Nasdaq rose 1.77%, surpassing the 20,000-point mark for the first time. Tesla (TSLA.O) and Google (GOOG.O) both rose more than 5.5% and hit new highs.
On the crypto market front, Bitcoin is back above $101,000, up more than 6% in the past 24 hours, with $XRP, Solana ($SOL) and Cardano ($ADA) up 23%, 11% and 16% respectively in the same period.
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Meme coins like Dogecoin ($DOGE), Shiba Inu ($SHIB), dogwifhat ($WIF), $BONK, and $FLOKI all saw double-digit gains. AI concept tokens generally rose by more than 7%, and leading AI coins such as $NEAR, $ICP and $Render rose by more than 10%.
Institutions buy on dips
Institutional investors are seizing the opportunity and buying the dip, data from Sosovalue shows. On December 10, inflows into U.S. spot Bitcoin ETFs were $439.5 million. The U.S. Spot Ethereum ETF saw its third-largest daily inflow ever at $305.7 million.
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Arkham monitoring data shows that BlackRock and Fidelity ETFs purchased more than $500 million worth of ether in the past 48 hours.
Trader: Bitcoin’s next target is around $112,000
Well-known trader Skew pointed out that the market is currently in a balance between supply and demand, and emphasized that there are "passive buyers" supporting prices. In addition, he also mentioned that there are strong buying and selling orders around $97,000 on Binance, the world’s largest cryptocurrency exchange.
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Another trader, Roman, analyzed from the perspective of the daily chart and believed that the relative strength index (RSI) has been completely reset, which indicates that Bitcoin may usher in a strong rise with a target price of around $112,000.
Well-known trader Johnny also said that Bitcoin has rebounded many times around $95,000, showing strong support and is expected to continue to rise in the future.
Chart analyst Upadhyay believes that Bitcoin’s strong rebound from the 20-day moving average (about $96,133) shows that bulls remain strong. A meaningful break above the resistance range between $101,351 and $104,088 would further confirm the uptrend. By then, Bitcoin is expected to hit $113,331 and even challenge the $125,000 mark.
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However, if the price falls below the 20-day EMA, it could trigger profit-taking selling, causing the price to fall back to the $90,000 area. Therefore, $90,000 is a focus of contention between bulls and bears and an important support level.
Taken together, many analysts are optimistic about the future trend of Bitcoin. Although the market may experience some volatility in the short term, the overall trend is still biased towards the bulls.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
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Original author: BitPush
“Is the interest rate cut stable? Bitcoin returns to 100,000 magnesium, analysts are optimistic about breaking through "this point"" This article was first published in "Crypto City"
