BTC/USD: Bitcoin Reclaims $100,000 as Crypto Joins Stock Rally After Inflation Data
Interest rates are expected to go down by a quarter point next week and that could make Bitcoin more affordable to traders. Bitcoin prices (BTC/USD) regained $100,000 per coin after Wednesday’s fueled speculation that the Federal Reserve will cut interest rates next week. The upside swing first came to the stock market with the Nasdaq Composite pumping for the first time ever. Shortly after, the feelgood factor spilled over to the and lifted major tokens from a few days of sideways movement. Bitcoin and the crypto space stand to gain a lot by another cut to interest rates. With digital assets getting more and more sucked into the traditional financial markets, they’re more prone to react to economic news and reports. Lower rates generally mean money gets less expensive as borrowing costs go down, prompting businesses to take out loans and expand. Consumers are more confident to spend more boldly and traders… well, they can more easily jam cash into risk assets. And with that, liquidity gets deeper and improves the overall flow of cash around the system. Now it all comes down to the Fed’s meeting on December 17-18 when officials are likely to reduce the benchmark interest rate by 25 basis points. Expect volatility to continue in the lead-up to the event not just in Bitcoin, but other major tokens as well. Ethereum was up about 2.4% this morning, trading near $3,930 per coin.