Bitcoin has experienced a slight decline of 1% over the past day, trading at just under $116,000. Traders are eagerly awaiting the Federal Reserve’s FOMC statement scheduled for Wednesday, which could influence market movements significantly. Many anticipate that Bitcoin may soon surpass the $120,000 mark as expectations rise regarding a potential interest rate cut.
This week is pivotal for financial markets as the U.S. Federal Reserve prepares to announce its decision on interest rates.
Experts predict that the Fed will implement a reduction of at least 25 basis points in response to recent economic trends.
The cryptocurrency market has started off on a negative note this week, with Bitcoin and other leading cryptocurrencies struggling to gain traction.
Focus Shifts to the Fed
The key highlight of this week remains the anticipated announcement from the U.S. Federal Reserve regarding possible interest rate cuts.
The central bank will clarify whether there will be an immediate reduction or if investors must wait longer for such news.
Analysts expect at least a 25 basis point cut due to signs of weakening in the labor market across America.
A few weeks ago, Fed Chair Jerome Powell hinted at potential rate cuts despite President Trump’s suggestion that such measures should have been taken earlier this year.
Additionally, data from the core Producer Price Index (PPI), which excludes volatile food and energy prices, supports arguments for an interest rate cut by indicating lower inflation levels.
The PPI saw a month-over-month decrease of 0.1%, falling short of analysts’ predictions for a 0.3% increase.
Despite disappointing Consumer Price Index (CPI) figures, experts believe these won’t hinder prospects for an upcoming rate cut.
Moreover, increasing Open Interest (OI) and funding rates within Bitcoin’s blockchain indicate traders are gearing up for an upward movement in price soon.
Bitcoin May Reach $120K If It Stabilizes Above $116K
The BTC/USD four-hour chart displays bullish signals even though Bitcoin dipped below $116K briefly earlier today.
The market appears poised for retracement before potentially launching into another rally within days.
After experiencing a weekly gain of 3.72%, Bitcoin struggled against resistance at $116k.
Currently priced around $115600 per coin,
If it manages to close above daily resistance set at approximately $116905,
it could trigger further gains towards reaching that significant psychological milestone of$120000in coming days.
The all-time high remains firmly set around$124kfor mid-term targets too!
