Mining stocks including WULF, BTDR, IREN and HUT dropped over 5%, while BTC holder medical devices firm Semler Scientific plunged 10%.
A recent report by digital assets research firm 10x Research highlights that the US Federal Reserve’s (Fed) stance on interest rate cuts remains the most significant hurdle that could dampen the current Bitcoin (BTC) rally. Bitcoin’s Trump-Fuelled Rally At Risk Ahead Of FOMC Meeting Since pro-crypto Republican candidate Donald Trump secured victory in the November presidential election, Bitcoin has climbed an impressive 47%, rising from approximately $67,500 on November 4 to around $99,700 as of January 6. Related Reading: Metaplanet Bitcoin Reserves Grow With Fresh $61 Million Purchase While further gains are anticipated during the so-called “Trump rally” leading up to the January 20 inauguration, the momentum might stall ahead of the Federal Open Market Committee (FOMC) meeting later in January, says 10x Research’s Markus Thielen. Thielen predicts a “positive start” to January for BTC, followed by a slight dip before the Consumer Price Index (CPI) inflation data release on January 15. A favorable CPI report could reignite optimism, potentially fueling another rally before Trump’s inauguration. However, Thielen cautions that bullish momentum may wane ahead of the FOMC meeting on January 29. Latest data from CME Group’s FedWatch tool shows that interest rates are likely to remain unchanged following the upcoming FOMC meeting. The tool currently predicts a 90.9% chance of interest rates remaining 425 and 450 basis points (BPS). Bitcoin’s decline of approximately 15% to $92,900 following the December 18 FOMC meeting underscores the Fed’s significant influence. This drop came after the Fed signaled only two rate cuts for 2025 instead of five, reinforcing Thielen’s view that the Fed’s decisions are the “primary risk” to BTC’s current bullish trajectory. Thielen stated: We anticipate lower inflation this year, though it may take some time for the Federal Reserve to recognize and respond to this shift formally. Thielen also cited institutional participation as a key factor influencing Bitcoin’s short-term price action, with metrics like stablecoin minting rates and crypto exchange-traded fund (ETF) inflows serving as indicators of institutional interest. Institutional Interest In Bitcoin Continues To Rise Although US spot Bitcoin ETFs faced significant outflows at the end of December, fresh inflows have sparked optimism about rising institutional interest in the premier cryptocurrency. Data from SoSoValue notes that spot Bitcoin ETFs saw $908 million in inflows on January 3. Related Reading: Bitcoin May Face ‘Demand Shocks’ In 2025 Due To Growing Institutional Interest: Report In addition, several major BTC mining firms such as MARA and Hut 8 are bolstering their BTC reserves. Technology firms such as Canada-based video-sharing platform Rumble also recently unveiled a $20 million BTC treasury strategy. A separate report by cryptocurrency exchange Bitfinex predicts Bitcoin could surge to $200,000 by mid-2025, despite minor price pullbacks. At press time, BTC trades at $101,555, up 3.7% in the last 24 hours. Featured image from Unsplash, charts from 10x Research, CME FedWatch and Tradingview.com
Barr will continue to serve as a member of the Federal Reserve Board of Governors.
Following the Federal Open Market Committee (FOMC) meeting on December 18, global equity market indices have experienced a slight downturn. However, Bitcoin (BTC) has held steady, trading in the mid-$90,000 range at the time of writing. Bitcoin Steady Amid Speculations Of Slower Interest Rate Cuts After over a year of consecutive interest rate hikes, the […]
Bitcoin is now down around 11% after reaching its all-time high price of $108,135 on Dec. 17.
The acquisition brings Metal blockchain solutions to Bonifii’s portfolio of credit unions.
Short-term BTC puts are in demand after hawkish Fed dented the bullish sentiment in risk assets.
Bill Dudley joined others in suggesting the only purpose of a US government Bitcoin reserve would be to reward Trump’s crypto supporters.
Interest rate cuts, increases in the M2 money supply, structural deficits, and geopolitical tensions typically drive Bitcoin's price higher.
AI is already impacting mortgage lending and how credit scoring is calculated, US Representative Maxine Waters said as she introduced a new bill in Congress.
CME FedWatch shows the market is expecting the Federal Reserve to cut rates by 25 basis points this month, which would be the third cut this year.
While the crypto market eagerly anticipates Bitcoin (BTC) breaking the $100,000 price level, the premier cryptocurrency may have even more room for growth in 2025 as the global M2 money supply expands. Global Liquidity Surge: A Catalyst For Bitcoin? In a detailed analysis on X, Jamie Coutts, chief crypto analyst at Real Vision, brought his […]
A December rate cut from the U.S. central bank might not be as sure of a thing as previously thought.
Minneapolis Federal Reserve President Neel Kashkari, who previously called the cryptocurrency industry "worthless" and "nonsense," still isn't an uber-bull, though.
ADA price breaks the multimonth downtrend pushing Cardano to four-month highs, thanks to multiple macro tailwinds and favorable technicals.
Fed Chair Jerome Powell's speech later today could shake up markets as he will face questions about the central bank's outlook on monetary policy and inflation after Donald Trump's decisive win of the U.S. presidential election.
A seasoned market expert has shed light on Bitcoin’s current bearish performance, noting that the small price correction that has led to a significant liquidation of BTC positions is “healthy and reasonable,” addressing worries about its future potential. Bitcoin’s Bearish Move Not A Thing To Worry About? Bitcoin’s recent upward rally witnessed earlier last week […]
ADA's gains largely coincide with the conclusion of the fourth Cardano Summit, among other catalysts.
A ban on Bitcoin? Even the suggestion as part of a thought experiment is bound to chafe the crypto community.
As the crypto market maintains its bullish strength, many key metrics of Bitcoin have been demonstrating strong and optimistic trends in recent weeks, which could impact prices positively, suggesting a promising outlook for BTC in the upcoming days. A Strong Growth In Bitcoin Futures Premium Bitcoin‘s futures annualized premium, a crucial metric that often gives […]
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Reducing network growth and diminishing user engagement are driving Cardano’s prices lower at the end of this week.
The U.S. central bank would be conflicted, because stablecoins compete with the Fed's payments infrastructure and with potential CBDCs.
Amid the recent renewed upward price movement in Bitcoin, the demand for the largest cryptocurrency asset among short-term holders has witnessed a notable rise, suggesting strong optimism about BTC’s potential for growth in the near term. Short-Term Holders Demand For Bitcoin Rebounds Axel Adler Jr., a macro researcher and author at leading on-chain firm CryptoQuant, […]
One observer noted 7,000 PlusToken-related ETH transferred to crypto exchanges on Wednesday, raising concerns about potential selling pressure.
The bullish jobs report adds fuel to hopes for an “Uptober” and fourth-quarter rally in Bitcoin’s price.
Bitcoin surprised traders by opening the week in the red, and the Federal Reserve’s announcement about future rate cuts failed to reverse the downtrend.
Bitcoin’s monthly close could reverse a 6-month-long downtrend and signal traders’ intent to push BTC price to new highs.