Hassan Maishera
TL;DR
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Bitcoin has rallied to a new all-time high price of $106,488 a few hours ago after adding 3% to its value.
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The rally comes ahead of a possible Fed rate cut later this week.
BTC Hits a New All-time High of $106,488
Bitcoin, the leading cryptocurrency by market cap, has hit a new all-time high price after surging by more than 3% in the last 24 hours. BTC rallied to $106,488 during the early hours of Monday.
However, it has slightly retraced and now trades at $104,987 per coin. The positive performance comes as analysts expect the U.S. Federal Reserves to reduce the benchmark borrowing cost by 25 basis points to the 4.25% to 4.5% range. This rate cut will mark a total easing of 100 basis points since September.
However, there are concerns that the apex bank will seek to temper expectations for further easing. The Fed is expected to announce its rate cut and economic forecasts on Dec. 18 at 14:00 ET.
While speaking to Cryptowisser, Ruslan Lienkha, chief of markets, YouHodler, stated that,
“Despite recently released inflation figures showing a slight increase, the CPI aligned with market expectations. This alignment has sustained optimism regarding a potential rate cut by the Federal Reserve in December, fueling hopes for the continuation of the Christmas rally. It is reasonable to expect this upward momentum to persist until the Federal Reserve announces its policy.”
Marc Chandler, chief market strategist at Bannockburn Global Forex also told CoinDesk that “suggest the risk of a 'hawkish' cut with less rate hikes next year than anticipated in September in the Summary of Economic Projections (dot plot), recognition that economy is stronger than it had expected previously, and inflation is on a bumpy path that allows the Fed to be patient.”
Ether Tops $4k
With Bitcoin rallying, altcoins have also been performing positively. Ether, the second-largest cryptocurrency by market cap, hit the $4k level earlier today after adding more than 2% to its value.
SUI is the best performer amongst the top 20 cryptocurrencies by market cap, up 15%. Thanks to Bitcoin’s positive performance, the total crypto market cap has now hit the $3.7 trillion mark.
