says exchange executive
For Jeff Mei, "bitcoin still has enormous upside potential."
The price of BTC marked a new all-time high. Source: Grok.
Bitcoin rose to $106,000 in the last few hours.
Interest rate cuts are expected in the U.S. for Wednesday.
Bitcoin (BTC) has reached a new all-time high by rising to over $106,000 in the last few hours. However, it quickly retreated to $104,500.
The following chart, provided by TradingView, shows the price of bitcoin so far in December:
Bitcoin (BTC) price since December 1. Source: TradingView
In this context, many may wonder: Is it already too late to invest in bitcoin?
Jeff Mei, COO of the exchange BTSE, assured that the digital currency still has enormous upside potential and could reach $125,000 by the end of 2025.
Mei highlighted that the recent increase is partly due to the gradual entry of institutions and high-net-worth individuals into the market.
According to the businessman, these entities need time to allocate between 1% and 3% of their portfolios to bitcoin and cryptocurrencies in general. For this reason, "the rise of bitcoin is just beginning," he stated.
The price increase, Mei explained, could accelerate once these investments materialize. He added that the pro-cryptocurrency appointments of U.S. President-elect Donald Trump, interest rate cuts, and China's stimulus spending provide reasons for optimism.
The odds of an interest rate cut are increasing.
The possible interest rate cut by the U.S. Federal Reserve (Fed) will be announced on December 18.
According to the FedWatch tool from CME Group, 97% of the consulted specialists expect a rate cut of 25 basis points to settle at 425-450 basis points. Meanwhile, the remaining 2.9% foresee that it will remain unchanged at 450-475 basis points, as shown in the following chart.
FedWatch has high expectations for an interest rate cut. Source: CME Group.
Interest rate cuts imply greater liquidity available in the economy, so markets tend to rise accordingly. Given that a large drop is not anticipated, it reflects expectations that the economy does not need a hard measure to boost itself, something that explains the current optimism.
