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Bitcoin: the $100k still on the table. What is expected now?
By Davide Grammatica
The words of Jerome Powell, chairman of the Federal Reserve, have been followed by a discreet correction in Bitcoin that again puts the $100k into question
Continued struggle for the $100k
A long series of favorable circumstances, politically, economically and financially, have throughout 2024 trailed Bitcoin steadily upward to $100k. A historic and exceptional achievement, following which the first cryptocurrency seems to want to find new certainty without failing its bullish trend.
The bullish factors have not suddenly failed, but from the macroeconomic front the voice of the Fed has somewhat dampened enthusiasm. As we reported earlier, the Federal Open Market Committee (FOMC) insisted on its policy of gradual cuts in interest rates, with a new cut of 25 basis points.
Still the Fed chairman, however, said he was against establishing a “state” Bitcoin reserve, in contrast to the new Republican administration.
Also because of this, the first cryptocurrency experienced a sudden increase in volatility, with a violent correction below $100k recovered only in recent hours.
Markets await Trump
In relation to BTC, the correction in U.S. stock indexes appears to be more pronounced, with Dow Jones, Nasdaq Composite and S&P 500 closing the last trading day down about 3 percent. Even by these numbers, it is apparent that the “macro” factor affects BTC’s bullish trend less than it does the stock market. The Fed’s prediction with respect to lower rate cuts in 2025, in fact, seems to have worried the markets.
Having more specific weight in BTC’s bullish rally, however, still seems to be the euphoria derived from Trump’s election, which has already led several states in the U.S. to move in the direction of new reforms favorable to the adoption of the first cryptocurrency.
It will remain to be seen, at this point, what will happen upon Trump’s inauguration into the White House. For this reason, too, several analysts see January 20, 2025 as a turning point, with the new president having to reassert himself in front of crypto investors with facts. In case expectations are not met, a sharp reversal of BTC’s bullish trend cannot be ruled out.
