On November 8, Bitcoin circled around $76,000, hitting highs near $77,000 on Bitstamp after a 0.25% Fed rate cut.
Bitcoin's Rise Following Rate Cuts
Data from Cointelegraph Markets Pro and TradingView showed modest BTC price gains. Volatility occurred as the Federal Reserve lowered interest rates. Fed chair Jerome Powell noted that inflation is progressing toward the 2% goal but remains elevated.
Market Expectations and Potential Risks
According to CME Group, the market anticipates another 0.25% rate cut in December. It is important to monitor long-term inflation expectations that could impact Fed policies. Analysts suggest potential challenges if inflation expectations begin to rise.
High Market Liquidity Levels
Liquidity is building heavily on either side of the spot price. CoinGlass highlights the presence of high leverage liquidity, which may suggest more cautious trading. Traders warn of a potential correction in the market under certain conditions.
Bitcoin continues to rise amid macroeconomic changes, but high risks and uncertainties may affect its future dynamics.
