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The situation in the Middle East has eased, with Israel and Lebanon agreeing to reach a permanent ceasefire agreement. The Federal Reserve meeting minutes indicate that the U.S. will maintain a gradual rate-cutting pattern. On Tuesday (11/26), major U.S. stock indices closed higher, with both the Dow and S&P 500 reaching all-time highs. However, cryptocurrencies experienced a broad decline, with Bitcoin falling back to 91K (Crypto City note: it once dropped to a low of 90,791 dollars), and Ethereum retracing to above 3,300 dollars.
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The Federal Reserve will maintain a gradual rate-cutting approach.
The minutes of the Federal Reserve meeting indicate that there is still a long way to go before pausing rate cuts. Federal Reserve officials stated that as the economy remains robust and inflation slows, they generally support a cautious approach to future rate cuts.
According to the minutes of the Federal Open Market Committee meeting that ended on November 7, 'Participants expect that if data aligns with expectations, inflation continues to decline to 2%, and the economy remains close to maximum employment, then over time, a gradual shift to a more neutral policy stance may be appropriate.'
The CME FedWatch Index shows that 63.2% of traders expect the Federal Reserve to continue to cut interest rates by 25 basis points at the December meeting, up from 52.3% the previous day.
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Standard Chartered: Bitcoin may pull back to 85K, with a year-end target price of 125K.
Bitcoin challenged the $100,000 mark several times last week but failed, experiencing a significant pullback this week. Geoff Kendrick, Standard Chartered's global head of digital asset research, noted factors driving the pullback, including changes in the U.S. Treasury market and the upcoming expiration of monthly options.
Kendrick stated that since Bitcoin is often viewed as a hedge against instability in traditional financial markets, increased confidence in U.S. Treasuries may temporarily weaken Bitcoin's appeal, leading to a decrease in its price.
Another factor influencing Bitcoin's price in the short term is the expiration of the asset's monthly options this Friday. Kendrick noted that Deribit's data shows there are 18,000 Bitcoin in open contracts with exercise prices between $85,000 and $100,000, which could limit price volatility before expiration.
However, institutional demand for Bitcoin remains strong. Kendrick pointed out that since the beginning of the month following the U.S. elections, Bitcoin spot ETFs have accumulated about 77,000 Bitcoin, while MicroStrategy has purchased an additional 134,000 Bitcoin.
MicroStrategy's purchases show no signs of slowing down and are unlikely to be sold, but since the election, the average purchase price for the ETF and MicroStrategy has been $88,700, which could serve as short-term support. Bitcoin may consolidate between $85,000 and $88,700 before resuming its upward trajectory.
He remains optimistic about Bitcoin's long-term prospects. Kendrick reiterated his year-end target price of $125,000 for Bitcoin, which is expected to rise further to $200,000 by the end of 2025.
【Disclaimer】The market is risky, and investment requires caution. This article does not constitute investment advice; users should consider whether any opinions, views, or conclusions in this article are relevant to their specific situation. Responsibility for any investment based on this falls solely on the investor.
This article is reprinted with permission from: (Chain News)
'Bitcoin once fell below 91,000! Standard Chartered: This level is support, and it is still expected to reach 125,000 by the end of the year.' This article was first published in 'Crypto City.'
