The Federal Reserve may slow down the pace of rate cuts or even delay them. This could lead to a stronger dollar and exert some pressure on risk assets, including Bitcoin.
However, despite this, the market generally expects that the Federal Reserve may cut interest rates at its December meeting. According to data from the Chicago Mercantile Exchange, the market believes there is over a 70% chance that the Federal Reserve will cut rates by 25 basis points in December. Lower interest rates typically stimulate market liquidity and provide support for risk assets, which could be a positive factor for Bitcoin prices.
In addition to monetary policy factors, the interest of institutional investors and political sentiment continue to drive the rise of Bitcoin.
Maksym Sakharov, co-founder of WeFi, emphasized that institutional investors have been continuously accumulating Bitcoin, and many believe that as global trade prepares to deal with the tariffs proposed by Trump, Bitcoin will become an effective tool for hedging against inflation and economic uncertainty.
Sakharov stated: "The continued accumulation by institutions remains the main driving force behind the rise in Bitcoin prices. Furthermore, the Trump administration's support for cryptocurrency policy has also bolstered market confidence. The combination of institutional investors buying in and favorable political sentiment has propelled Bitcoin prices."
Matt Mena, a cryptocurrency research strategist at 21Shares, believes that the next key target for BTC could be $110,000. According to Deribit data, the trading volume of call options expiring on January 31, 2025, is mostly concentrated at this price point.
