U.Today – Bitcoin (BTC) Price Update

Bitcoin (BTC) has once again retested the $100,000 mark, fueled by renewed optimism surrounding potential Federal Reserve interest-rate cuts.

Bitcoin rebounded to a high of $101,201 in Wednesday's session after two days of declines, as expectations of a Federal Reserve interest rate cut boosted investor sentiment. Speculators increased their bets on a decrease after the U.S. consumer-price inflation met expectations.

The consumer price index report for November, published by the Bureau of Labor Statistics on Wednesday, showed a 12-month inflation rate of 2.7% and a monthly increase of 0.3%.

Core inflation, excluding food and energy prices, was 3.3% annually and 0.3% monthly, consistent with the Dow Jones consensus estimates.

This report comes ahead of the Federal Reserve's final policy meeting next week, where rate cuts will be announced. There's a strong expectation that the Fed might cut rates further, with traders pricing in a nearly 99% chance of a quarter-point rate cut. However, the Fed might skip a January cut as it assesses the impact of previous cuts on the economy.

Investors are anticipating more economic data, with the November producer price index report due on Thursday.

As of press time, Bitcoin was trading at $100,839, holding half of a nearly 5% gain from the previous day, marking the largest increase in two weeks.

Bitcoin Predicted to Reach $200,000

After 5,256 trading days, Bitcoin price crossed $100,000 for the first time on Dec. 5, and the market capitalization briefly exceeded $2 trillion. Following a retest of the $100,000 mark, with Bitcoin reaching highs of $101,984 on Wednesday and $101,953 today, all eyes are on Bitcoin's next move.

The year 2024 is anticipated to be significant for crypto, with expectations for 2025 driven by predictions from Bitcoin ETF issuer Bitwise. They forecast higher inflows for Bitcoin ETFs and a BTC price exceeding $200,000.

This article was originally published on U.Today