The latest official data shows that due to US inflation data meeting market expectations, investors are increasing their bets that the Federal Reserve (Fed) will announce an interest rate cut next week, leading to a strong rebound in Bitcoin, returning to the $100,000 mark.
Data from the US Bureau of Labor Statistics shows that the Consumer Price Index (CPI) for November increased by 2.7% year-on-year, while the core CPI, excluding food and energy, increased by 3.3% year-on-year, both meeting expectations, and market expectations for a Fed interest rate cut next week have risen significantly.
The CME FedWatch Tool shows that traders believe the probability of the Fed cutting rates by 25 basis points (0.25 percentage points) next week has risen to 92%.
After the US inflation data was released, the three major US stock index futures surged, gold rose simultaneously, and Bitcoin soared from $98,000, reclaiming the $100,000 threshold, reaching a high of $101,960.
As of the time of publication, the trading price of Bitcoin is $100,734, having risen 4.9% in the past 24 hours.
When commenting on recent market trends, well-known trader Skew pointed out that there are a large number of orders between supply and demand in the market, and there are 'passive buyers' driving up the price of coins.
Another trader, Roman, believes that the Relative Strength Index (RSI) has been completely reset, indicating that Bitcoin may experience a strong upward trend, with prices looking to reach $112,000.
$BTC 1D
Got the correction down to our diagonal uptrend line to hold as support and now we’re continuing our path upwards.
Should see a clean move to the 112 area or above with stoch & RSI completely reset.#bitcoin #cryptocurrency #cryptonews https://t.co/eLK4hXd3g0 pic.twitter.com/qO4F3jFAYZ
— Roman (@Roman_Trading) December 11, 2024
Well-known trader Johnny expressed a similar viewpoint, mentioning that Bitcoin has rebounded multiple times in the $90,000 to $98,000 range, indicating strong support and continued upward momentum.
"The Fed's interest rate cut next week is highly likely, and Bitcoin returns to $100,000! Traders cheer: Keep pushing for $110,000". This article was first published on (Blockke).
