Bitcoin (BTC) remains the center of investors’ attention and concern especially following the latest nonfarm payrolls data from the US Bureau Of Labor Statistics (BLS). While the general market sentiment remains bullish, recent developments in the US economy indicate that macroeconomic factors may be against the premier cryptocurrency in 2025. Currently, Bitcoin trades above $94,000 following another turbulent price performance which produced a loss of 3.45% in the past seven days. Related Reading: Bitcoin Faces Mixed Signals: Institutional Investors Accumulate Amid Retail Weakness Fed’s Pivot To Rate Cuts Is Dead – Analysts In an X post on December 10, market experts at global capital market analysis firm The Kobeissi Letter dissected the employment situation summary for December 2024. According to the BLS, nonfarm payrolls employment rose by 256,000 jobs in this month, indicating an additional 100,000 jobs to the widely predicted figures. Following this report, The Kobeissi Letter analysts highlight that the US economy has gained an average of 165,000 jobs since July representing the highest 6-month average since July 2024. Considering the US Federal Reserve began implementing interest rate cuts from September 2024 citing then a reduction in jobs growth and inflation, the analysts at The Kobeissi Letter stated the Apex Bank’s approach may have been misguided in light of the recent developments. Therefore, the Fed is expected to halt interest rate cuts to battle an expected heightened inflation due to a strong jobs data, with the potential of even adopting rate hikes. Generally, an absence of rate cuts or introduction of rate hikes is negative for Bitcoin as lower Interest rates afford investors the capacity to deal In risky assets such as cryptocurrencies. Following the Fed’s previous announcement of potential reduced rate cuts in 2025, Bitcoin experienced a flash crash of over 9% mid-December as investors moved to close their volatile positions in all financial markets. Currently, The Kobeissi Letter forecasts that the Fed’s pivot to rate cuts is likely over, with a 44% probability that there will be no rate cuts through June 2025. Related Reading: Crypto Liquidations Near $690 Million As Bitcoin, Ethereum Crash Bitcoin Price Overview At the time of writing, Bitcoin trades at $94,028 reflecting a 0.22% gain in the past 24 hours. Meanwhile, the premier cryptocurrency is down by 3.72% and 6.35% in the past seven and thirty days respectively. Despite the potential of reduced rate cuts in 2025, Bitcoin investors are likely to retain bullish sentiments due to other factors including historical price performance in a bull cycle, an expected pro-crypto US government and continuous institutional investments via the spot ETFs. With a market cap of $1.84 trillion, Bitcoin continues to rank as the largest cryptocurrency and world’s eight largest asset. Featured image from Investopedia, chart from Tradingview
Bitcoin price hit a new all-time high above $76,850, and multiple data points suggest that the rally has room to run higher.
Bitcoin must overcome resistance in the $64,000 to $66,000 zone before a new set of growth catalysts initiate the path to six-figure BTC price territory.
Solana (SOL) joined the recent crypto market pump after climbing 10% on Thursday. SOL’s price broke above a key resistance level, reigniting the bullish sentiment among investors and traders who believe the cryptocurrency is soon poised to reclaim higher targets. Related Reading: October To Remember: Descending Broadening Wedge Says Bitcoin Is Going To $90,000 Solana Breaks Above Key Resistance Level Following the highly anticipated US Federal Reserve (Fed) rate cuts, the crypto market rebounded 5% in the last 24 hours. Most cryptocurrencies have registered green numbers in the past day, recovering from their performance in the past few weeks. Solana, the fifth-largest cryptocurrency by market capitalization, regained momentum on Thursday after reclaiming a key level. The token had failed to break about the $140 resistance level throughout September, consolidating between the $130-$139 price range in the last few weeks. SOL had registered a 7% weekly drop by Wednesday, which alarmed many investors and market watchers. Some crypto analysts considered the token’s recent performance hinted at a possible correction that could drive the token’s price to a yearly low. Seasoned trader Peter Brandt suggested that the cryptocurrency could face a significant correction to the $80 support zone if it unsuccessfully continued retesting this resistance level. Nonetheless, SOL’s price recovered from its disappointing performance, jumping over 10% in the last 24 hours. The cryptocurrency moved past the $140 mark on Thursday morning, breaking out of a two-month downtrend. The price surge represented a 5.4% and 8.3% increase in the weekly and biweekly timeframes. Additionally, its daily market activity soared 81.3% in the past day, with a daily trading volume of $3.76 billion. Experts Set Next Targets For SOL Some analysts highlighted Solana’s performance, suggesting that the cryptocurrency is ready to aim for higher targets. Crypto analyst Jelle stated that, in the higher timeframes, Solana has performed considerably better than most altcoins. Other market watchers previously noted Solana’s strength since Q3 started. During the market retraces, the cryptocurrency was deemed “one of the strongest assets” after moving sideways while other tokens made new lows. Jelle highlighted that SOL’s price still held “all key support levels even though most altcoins are down >50% from the highs.” Effectively, Solana has remained above the $120 support zone since March, currently being 31% down from March’s highs. Related Reading: Will Bitcoin Bullish Swing Continue? Top Analyst Says Yes Similarly, crypto analyst Yuriy considers SOL’s recent performance has set the stage for a breakout above the $150 resistance level. However, he warned that bulls must hold the $138 mark, as failing to maintain this support could lead to a correction to the $120 level. The analyst believes a successful breakout will send SOL’s price to the $160 resistance zone next, potentially moving toward the $180-200 targets. As of this writing, SOL is trading at $143.3, a 12.2% increase in the last 24 hours. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin’s correction appears to be losing steam, as indicated by price momentum divergence, the formation of a Doji candlestick and other bullish patterns.
For the crypto and broader financial market, FOMC day is upon us once again today. And analysts agree that today’s meeting will be one of the most important in recent years. Kurt S. Altrichter, a financial advisor and founder of Ivory Hill, even describes today’s FOMC meeting as the “most important of your life.” In a new post on X, Altrichter explains why. FOMC Preview Central to today’s FOMC meeting is the Federal Reserve’s potential indication of a September rate cut. According to Altrichter, the financial markets are almost unanimously anticipating this move, with Fed fund futures indicating a near-certain likelihood of such an outcome. “Market expectation is a strong signal for a September rate cut,” Altrichter points out, marking today’s update as a pivotal moment for financial markets. The key question for today is: “How strongly does the Fed signal a September rate cut?” the expert explains. Investors are directed to pay close attention to the FOMC’s statement at 2:00 pm ET, especially the third paragraph, which could subtly signal the Fed’s confidence in reaching its inflation targets. Related Reading: XRP Price Poised For ‘Ultimate Breakout’ With $18 Price Target: Crypto Analyst Altrichter advises, “Look at the 3rd paragraph for this key sentence: The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.” Any modification in this wording would be a clear signal that the Fed is nearing its inflation control goals, potentially paving the way for rate adjustments. Altrichter outlines several potential outcomes from the meeting, each associated with specific market reactions. In a dovish scenario, the Fed signals a rate cut for September. Then, Altrichter expects a broad market rally, especially in sectors less sensitive to interest rates. “Yields and the dollar should fall modestly with a modest rally in commodities,” Altrichter predicts, suggesting significant movements in standard and sector-specific indexes. In a hawkish scenario, there will be no change in the forward guidance by the US central bank. If the Fed maintains its current stance without hinting at future cuts, the markets might experience a downturn. “Look out below and expect a sharp decline. SPX should fall by 1-2%,” he warns, noting that tech and growth sectors might relatively outperform due to their appeal during higher yield periods. How Will Bitcoin And Crypto React? The potential adjustments in US monetary policy bear direct consequences for the Bitcoin and crypto markets. Crypto, often viewed as alternative investments, reacts sensitively to shifts in monetary policy, particularly regarding interest rates. Related Reading: Bitcoin Bull Cycle Likely To Go On Till Mid-2025: CryptoQuant CEO If the dovish scenario materializes, this could make Bitcoin and cryptocurrencies more appealing. A signal of lower future rates could drive increased investment into the crypto market, potentially leading to price increases as investors seek higher returns in alternative assets. Conversely, should the Fed signal reluctance to cut rates, indicating a stronger economic outlook or concerns about inflation, this could strengthen the US dollar and increase yields on traditional financial instruments. Such an environment might lead to a pullback in the crypto markets, as the comparative advantage of Bitcoin and cryptocurrencies diminishes against strengthening traditional yields. Max Schwartzman, CEO of Because Bitcoin Inc, commented via X: “FOMC is [today] & its incredibly important as we get into the end of this fed cycle… Here is how the last 11 meetings have gone for Bitcoin…” Thus, today’s FOMC meeting is a watershed moment for financial markets globally, with significant implications for both traditional and crypto markets. As Altrichter succinctly puts it, “A Sept Fed rate cut has driven the 2024 bull market. Tomorrow’s meeting will either reinforce that tailwind or refute it. If the Fed signals a cut, the rally continues. No signal: markets could get ugly.” At press time, BTC traded at $66,462. Featured image from Shutterstock, chart from TradingView.com
Bullish divergence on the price chart, September rate cut prospects and increasing M2 supply are some catalysts that could resume the Bitcoin bull market cycle.