US economic data and the Fed's rate cut
In 2024, the US economic data showed a strong growth trend. According to the latest forecast, the US economy will reach 28.79 trillion US dollars in 2024 and exceed the 30 trillion US dollars mark in 2025, a year earlier than previously expected. This growth is mainly due to a series of economic policies, including the Federal Reserve's interest rate cuts.
The Fed cut interest rates twice in 2024. The first rate cut occurred on November 8, 2024, when the target range for the federal funds rate was lowered by 25 basis points to between 4.5% and 4.75%. Then, on September 19, 2024, the Fed cut interest rates again by 50 basis points, lowering the target range for the federal funds rate to between 4.75% and 5%. These rate cuts are intended to stimulate economic growth and increase market liquidity, and have also had a positive impact on the prices of financial assets such as Bitcoin.
International situation
The global economy faces multiple challenges in 2024, including inflation, geopolitical risks, and supply chain issues. In this context, investors often seek safe-haven assets to avoid uncertainties in traditional financial markets. Bitcoin, as a 'digital gold', is often seen as a hedging tool during times of economic uncertainty, attracting significant attention from investors.
Recent trends of Bitcoin
Approaching the $100,000 threshold
Since its establishment in 2009, Bitcoin's price has experienced significant volatility. However, in 2024, Bitcoin is gradually approaching the coveted $100,000 mark.
The surge in Bitcoin's price is driven by multiple factors. Firstly, Trump's presidential victory and institutional participation from companies like BlackRock have brought tremendous excitement to the Bitcoin market. The Trump administration's pro-cryptocurrency policy expectations, along with the possibility of continued interest rate cuts in the U.S., have provided strong support for Bitcoin's rise. Additionally, record inflows into Bitcoin spot ETFs indicate increasing interest from both retail and institutional investors.
Market sentiment and technical indicators
Market sentiment plays an important role in the fluctuations of Bitcoin prices. When the market is generally optimistic about Bitcoin, a herd effect often occurs, driving prices up. Conversely, when negative news emerges, investors may panic sell, leading to sharp price declines.
From a technical indicator perspective, Bitcoin's MACD histogram remains negative and is gradually shortening, indicating a strengthening of bullish momentum. At the same time, the KDJ indicator shows a neutral state, lacking clear golden cross or death cross signals. The analysis of these technical indicators provides important reference points for investors.
$100,000 psychological selling point
Although Bitcoin is gradually approaching the $100,000 mark, this psychological selling point still has significant impacts on investors. Many investors may choose to take profits when the Bitcoin price nears this important integer level, leading to price corrections. Therefore, whether Bitcoin can successfully break through the $100,000 barrier depends not only on the market's fundamentals and technical factors but also on investors' psychological expectations and sentiments.
Conclusion
Overall, Bitcoin's trend in 2024 is influenced by multiple factors including the economic environment, market sentiment, and technical indicators. Despite facing some challenges and uncertainties, Bitcoin, as an emerging investment tool and safe-haven asset, continues to attract considerable attention from investors. In the future, with the further recovery of the global economy and the continuous development of the cryptocurrency market, Bitcoin is expected to maintain its upward momentum and may successfully break through the $100,000 mark. However, while chasing high profits, investors also need to remain vigilant and manage risks.
Operation suggestion: Cautiously go long. Individuals playing the grid (92900-99900) should equate to a robot making money for you. $BTC $BNB #每日瓜分1BNB
