ChainCatcher message, according to Bloomberg, Bitcoin took a breather after initially breaking above $108,000 as traders await the anticipated Federal Reserve interest rate cut decision and assess the optimism brought by incoming President Donald Trump's support for cryptocurrencies.
Trump has promised to introduce friendly regulatory policies aimed at establishing the U.S. as a leader in the cryptocurrency space and supports the idea of creating a strategic national Bitcoin reserve. The imminent inclusion of MicroStrategy in the NASDAQ 100 index also adds to this optimism, as it opens the door for the company to further profit from its Bitcoin investments. The market widely expects the Federal Reserve to implement another 25 basis point rate cut on Wednesday, but the clarity of future policy direction has diminished due to strong U.S. economic growth and inflation risks stemming from Trump's broader agenda.
