Crypto Market Surges Ahead of Anticipated Fed Rate Cut
Bitcoin has risen above $94,400, marking its highest level since mid-November, with a roughly 5% increase over the past 24 hours and a weekly gain of about 4%. Ethereum has seen an approximate 8% rise, trading at about $3,359, and boasts a weekly gain exceeding 16%, the largest among the top 10 crypto assets. Other notable performers include XRP, up about 5% to $2.17; Solana, which gained 6% to $144; and Dogecoin, also up 6% to $0.15.
The crypto market has experienced over $376 million in liquidations within the last 24 hours, with short positions accounting for around $297 million. Bitcoin and Ethereum dominate these liquidations. This market activity occurs as the Federal Open Market Committee (FOMC) meeting takes place, where a third interest rate cut for the year is expected. The CME FedWatch tool indicates approximately a 90% probability of a 25 basis points rate reduction.
Market narratives suggest that risk assets are rallying ahead of the Federal Reserve's decision, with traders potentially engaging in a 'buy the rumor, sell the news' strategy. The prediction market Myriad, operated by Dastan (Decrypt's parent company), indicates about an 80% chance that Bitcoin will reach $100,000 before a potential crash to $69,000. Bitcoin has appreciated 9% over the past day according to these forecasts.
