Bitcoin recovers $100k price level as expectations of Fed rate cut rise

Bitcoin recovers $100k price level as expectations of Fed rate cut rise

Bitcoin (BTC) briefly surpassed the $101,000 threshold after a 3% surge in the hours following November’s Consumer Price Index (CPI) numbers, which came within the 2.7% expectations.

The rally has fueled investor confidence, with a 98% probability now assigned to a 25 basis point rate cut by the Federal Reserve next week, potentially bringing the US benchmark interest rate to 4.33%.

As of press time, Bitcoin was trading at $100,215 after bears failed to sustain a retracement below the six-figure level, based on CryptoSlate data.

Bitcoin’s latest gains come after a 10% correction from its record high of $103,918.67 reached on Dec. 5. During the pullback, the market experienced two flash crashes, with BTC briefly dipping to $90,200 before recovering.

Despite the volatility, CryptoQuant CEO Ki Young Ju believes that Bitcoin’s corrections in this bull cycle may remain limited, driven by growing demand from exchange-traded funds (ETFs) and unprecedented levels of institutional accumulation.

Wider market rally

The wider crypto market also rose with Bitcoin amid rising expectations of rate cuts.

Based on CryptoSlate data, Ethereum (ETH) was up 7.5% in the past 24 hours, surpassing $3,800, while XRP was up 20% over the same period to $2.42.

Solana (SOL), Cardano (ADA), Tron (TRX), and Avalanche (AVAX) also registered double-digit price increases — climbing 11%, 16%, 10.6%, and 13%, respectively. Meanwhile, Sui (SUI) returned to the top 20 largest cryptos by market cap after a 20% surge to $4.25.

According to Artemis data, the average crypto market gains over the past 24 hours stood at 7.8%. Tokens related to centralized exchanges had the best average daily performance, with a 17% upside.

Meanwhile, native tokens for bridges, such as LayerZero (ZRO) and Wormhole (W), were up 10% on average. Additionally, none of the 22 sectors tracked by Artemis performed negatively over the past 24 hours.

The post Bitcoin recovers $100k price level as expectations of Fed rate cut rise appeared first on CryptoSlate.

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