Bitcoin Moves Above $112,000 As US Fed Rate-Cut Hopes Rise

Bitcoin and other major cryptocurrencies advanced in early trading on Wednesday, tracking gains in global equities, as U.S. Federal Reserve Chair Jerome Powell’s comments bolstered rate cut bets.

The apex cryptocurrency rose 0.4% to $112,626.22 at the time of writing, as per CoinMarketCap data. Ethereum rose 2,7% to $4,121.13 and XRP rose 1.5% to $2.50. Among other tokens, Solana rose 4% and Dogecoin rose 2.5%.

"Based on the data that we do have, it is fair to say that the outlook for employment and inflation does not appear to have changed much since our September meeting four weeks ago," Powell said on Tuesday. The Fed had lowered interest rates by 25 basis points in the previous meeting.

"Data available prior to the shutdown, however, show that growth in economic activity may be on a somewhat firmer trajectory than expected," he cautioned. However, investors largely viewed his commentary as a sign of another rate cut of similar levels in the Federal Open Market Committee meeting scheduled for later this month.

Retail sentiment on Stocktwits about Bitcoin was in the ‘bullish’ territory at the time of writing.

Digital asset prices have come under pressure since Friday, after U.S. President Donald Trump threatened to slap 100% tariffs on all Chinese goods after Beijing’s export restrictions on rare earth technology.

Tuesday’s U.S. exchange-traded fund inflows showed that investors might be taking advantage of the dip. U.S. spot Bitcoin ETFs logged $102.6 million in net inflows while spot Ethereum ETFs recorded inflows of $236.22 million.

“I assume we'll see strength coming in shortly. Volatility remains high due to illiquid books. Great signs on the markets that we're currently still holding up and, I think, we'll see a new all-time high soon,” said investor Michael Van De Poppe.

Bitcoin has gained over 20% this year, while Ethereum is up 23%.

Also See: Coinbase Goes All-In On India's Crypto Market With CoinDCX Investment

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on