Crypto Market Sees Strong Investor Confidence with Over 700,000 New Bitcoin Addresses Generated

Crypto Market Sees Strong Investor Confidence with Over 700,000 New Bitcoin Addresses Generated

Crypto News – Bitcoin (BTC) has maintained relative stability around $35,000 over the past week, while altcoins took the lead in driving the crypto market’s rally during the weekend.

Prospects of Fed Interest Rate Cuts by March 2024

The latest US jobs report for October 2023 revealed employment figures lower than expected, leading analysts to believe that the Federal Reserve might pivot earlier than previously anticipated, potentially in 2024.

Several analysts are now assigning higher probabilities to the possibility of the first rate cuts occurring as early as March 2024. If this scenario materializes, it could trigger a significant upsurge in risk-on assets, including equities and cryptocurrencies. Notably, this timeframe aligns with the next Bitcoin halving in April 2024, potentially adding further fuel to the Bitcoin price rally.

The likelihood of the central bank reducing the headline interest rate by 25 basis points below current levels during the March meeting rose to 25.9% on Friday, up from 12.9% on Thursday, as reported by the CME FedWatch Tool.

According to Fed-fund futures, there is a 66.5% probability that the Federal Reserve will keep interest rates unchanged in the upcoming March meeting. The odds of interest rates staying steady stand at 95.4% for the December meeting and 89.4% for the January meetings. There is no chance of a rate cut at either of these meetings, but there is a 10.3% likelihood of a rate hike in January.

Charlie Ripley, senior investment strategist for Allianz Investment Management, commented, “Overall, the employment report could indicate a turning point in the US economy. More importantly, the data signals that monetary policy is effective and should reduce debate regarding whether policy is adequately restrictive.”

Potential Start of a Bitcoin Price Rally

Although Bitcoin has been in a consolidation phase around $35,000, it might represent the calm before a significant price rally. Respected crypto analyst Ali Martinez highlighted a significant milestone: more than 700,000 new BTC addresses were created in a single day. Such growth in the Bitcoin network is often considered a reliable indicator for price predictions.

With Bitcoin maintaining a favorable short-term momentum, CrediBull Crypto expresses optimism that the asset could continue to gain traction, possibly surging towards the psychologically significant $40,000 threshold. In the event of such a milestone, the analyst envisions the potential for a journey towards a new all-time high (ATH).

Furthermore, the crypto market has seen capital inflows exceeding $10 billion in the past month, underscoring strong investor confidence in the sector.