Bitcoin Price: $140K by January Amid Fed Rate Cut
Bitcoin Price– Bitcoin (BTC) has entered the final stretch before Christmas with impressive new all-time highs and even higher price expectations for the coming weeks. As the cryptocurrency market continues to experience bullish momentum, Bitcoin traders are eyeing significant gains, with price targets now reaching $140,000 and beyond.
Bitcoin Hits New Records: A Big Week for Crypto
Bitcoin has started the week with excitement, setting a new all-time high of $106,533 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView. The cryptocurrency community is buzzing, with many anticipating continued growth throughout the week.
Filbfilb, co-founder of trading platform DecenTrader, summed up the mood, saying, “It’s going to be a big week.” Some traders were caught off guard by the rapid price movement, which took many by surprise ahead of the usual U.S. Federal Reserve interest rate decision.
As trader CrypNuevo pointed out, “Short liquidations target hit,” highlighting the volatile market conditions that led to over $300 million in net crypto liquidations in just 24 hours.
Bitcoin Price Targets Soar: $140,000 and Beyond
Bitcoin’s price targets are becoming increasingly optimistic. Just a week ago, $110,000 was a key goal, but now, traders are raising expectations. In a December 15 post, the analytics account Bitcoindata21 set $140,000 as a “base case” for Bitcoin’s first major cooling-off period, predicting that Bitcoin could reach this level by mid-January.
“Bitcoin trends toward $140k+ by mid-January for a short-term top,” said Bitcoindata21. Additionally, on-chain indicators show Bitcoin could reach $140,000 by early January, with key technical levels aligning with this target.
Bitcoin’s Market Value to Realized Value (MVRV) metric is also showing room for further growth, with some analysts eyeing $150,000 as a potential target in the coming months.
Federal Reserve Interest Rate Cut: A Boost for Bitcoin?
The U.S. Federal Reserve is in the spotlight as it prepares for its December 18 meeting. The Federal Open Market Committee (FOMC) is widely expected to implement a 0.25% interest rate cut, which could create a more favorable environment for Bitcoin and other risk assets.
The Fed’s stance on inflation and interest rates will play a crucial role in the market’s outlook. As inflation remains a concern, some experts predict that the U.S. may face stagflation — a situation where inflation is high and economic growth slows. According to trading resource The Kobeissi Letter, “We are at risk of a potential 1970s-style rebound in inflation into 2025/2026.”
Despite these concerns, the rate cut is expected to be a positive catalyst for Bitcoin, as CME Group’s FedWatch Toolshows a 97.1% probability of a 0.25% rate reduction.
Trump’s Bitcoin Reserve Plan: The Impact on Bitcoin’s Price
As Bitcoin continues to break records, the prospect of Donald Trump’s Bitcoin reserve has become a major talking point. According to reports, Trump plans to create a national Bitcoin reserve once he takes office in January, potentially using an executive order to purchase Bitcoin.
Jack Mallers, CEO of Bitcoin payment platform Strike, told podcast host Tim Pool on December 14, “There’s potential to use a day-one executive order to purchase Bitcoin… It wouldn’t be the size and scale of 1 million coins, but it would be a significant position.”
The market has responded positively to this potential move, with some analysts predicting that Bitcoin’s price could skyrocket to over $500,000 if Trump’s plan is executed on a large scale.
“We’re going to do something great with crypto because we don’t want China or anybody else — not just China but others are embracing it and we want to be the head,” Trump said in a CNBC interview, fueling further excitement in the market.
Institutional Support: Michael Saylor’s Continued Bitcoin Purchases
Bitcoin’s rally is also supported by prominent figures in the business world. Michael Saylor, CEO of MicroStrategy, has hinted that his company has been purchasing even more Bitcoin for its treasury, further solidifying the growing institutional interest in the cryptocurrency.
Saylor’s latest posts on X (formerly Twitter) have sparked speculation that MicroStrategy is preparing for more significant Bitcoin buys, fueling optimism in the market.
Open Interest and Funding Rates: Stable Despite Record Highs
Bitcoin’s open interest (OI) has reached new all-time highs, signaling increased activity in the futures market. OI refers to the total value of Bitcoin futures contracts, both long and short positions. While spikes in open interest can lead to increased volatility, Bitcoin’s funding rates remain relatively stable, indicating that the market conditions are not as extreme as during previous price moves.
As trader Jelle pointed out, Funding rates remain at very healthy levels. Nobody on my timeline seems to care, suggesting that the market is not overly concerned with funding rate fluctuations.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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