Bitcoin continues to show growth; however, emerging volatility amid interest rate changes may significantly impact the market. The article explores current trends, potential changes, and forecasts.
Current Situation with Bitcoin
The price of Bitcoin has been steadily rising, but the growth rate is slowing as many altcoins show signs of a possible breakout. Over the last 24 hours, there has been significant liquidation of long positions amounting to over $333 million, which will likely lead to price consolidation. This sets the stage for further positive market sentiment.
Expected Interest Rate Changes
Bitcoin is likely to lead the altcoin industry in terms of volatility in the next three days as central banks of three major economies prepare to release their benchmark interest rates. Today, the Federal Reserve will release its final FOMC data for 2024, with analysts forecasting a reduction to 4.5% amid cooling inflation. On Thursday, the Bank of Japan will review its monetary policies, keeping the rate at 0.25%, and the Bank of England is expected to hold its rate at 4.75%.
Forecast for Future Development
Crypto analyst Ali Martinez cautions that Bitcoin traders and holders should brace for more challenging times as the flagship coin enters the parabolic phase of the bull market. Martinez compared the 2024/2025 rally to previous surges in 2017 and 2020/2021, but expects more optimism this time. It is forecasted that Bitcoin will first reach $110k, then corrects after hitting $125k, undergoes a bigger correction at $150k, ending the bull run at $220k in late 2025.
The Bitcoin market is poised for significant volatility in the near term, making the current market situation particularly intriguing for analysts and traders. Changes in interest rates could profoundly impact the market, leading to new strategies among participants.
