"Bitcoin surged past $117,000, its highest level since late August, as cryptocurrencies attempt to break free from the deep corrective phase that has dominated recent weeks. The move comes with improved flows into crypto-related products and no major long liquidation events, which leaves room for further upside in the near term. The main driver of risk appetite is today's Federal Reserve decision."
"Markets widely expect the central bank to initiate its easing cycle with a 25-basis-point cut, according to CME's FedWatch Tool, which also indicates a 70% probability that total cuts will reach 75 basis points before year-end. Optimism over this trajectory has not only underpinned Bitcoin but also sent the NASDAQ 100 to fresh record highs yesterday, reflecting how liquidity expectations are lifting the broader risk spectrum."
"The updated dot plot and Jerome Powell's communication will be critical in shaping forward guidance, with investors weighing whether the Fed will leave the door open to consecutive cuts or remain cautious in light of inflation still running above target. The internal divisions within the Fed add an additional layer of complexity. According to analysts cited by Wall Street Journal, Powell faces pressure from Trump-appointed governors pushing for deeper cuts while regional Fed officials remain wary of loosening policy too aggressively."
Bitcoin surged past $117,000 as improved crypto-product flows and the absence of major long liquidations created scope for further upside. Markets expect the Federal Reserve to start easing with a 25-basis-point cut, and CME data shows a 70% chance cuts total 75 basis points by year-end. Liquidity hopes lifted the NASDAQ to record highs. Investors await the updated dot plot and Jerome Powell's comments to gauge whether cuts will be consecutive or tempered by persistent inflation. Internal Fed divisions—pressure from Trump-appointed governors versus cautious regional officials—add uncertainty, while US-China talks on TikTok and geopolitical moves heighten market complexity.
Read at London Business News | Londonlovesbusiness.com
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