30s Summary

As of December 18, Bitcoin hasn’t reached the $105,000 mark due to investor anticipation of US Federal Reserve’s interest rate announcement. Bitcoin’s value has recorded lows, and data shows that most fans believe the Federal Reserve will cut rates. Some analysts have voiced concerns about a potential financial policy shift in 2025 due to inflation. The market is speculated to still favour spending despite looming interest rate changes. Market insiders hint at a ‘gap’ in Bitcoin’s futures markets at around $102,000 that BTC/USD could fill during the announcement.

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As of December 18, Bitcoin didn’t hit the $105,000 benchmark as everyone held their breath for the next interest rate decision from the US Federal Reserve. Plus, the go-to resource for all-things Bitcoin trends, Cointelegraph and online charts platform, TradingView, pointed to never-before-seen lows for Bitcoin as Wall Street woke up.

We’re set to hear from the Federal Open Market Committee (FOMC) at 2.30pm Eastern Time. What they’ve got to say on interest rates could shake things up, especially as we’re expecting an announcement from the Fed’s big boss, Jerome Powell. Most Bitcoin fans reckon the Federal Reserve will cut their rate by 0.25%, according to data insights gurus, the CME Group’s FedWatch Tool.

In a recent post from The Kobeissi Letter, a trusted name in trading, they’re worried that we could see financial policy from the Fed swing upwards in 2025 due to a boost in inflation rates, despite a cut this year. They believe the likelihood of increased interest rates making a comeback in 2025 are climbing.

Adding to this, prediction service Kalshi estimated there’s a 19% chance the Fed would increase rates. With a rising inflation and a weakening job market, the Fed’s got a tough decision to make. They concluded by questioning whether the Fed will favor inflation or the labor market.

In the run up to the FOMC’s big reveal, Bitcoin seems to be keeping a low profile with sell-off vibes reflecting the usual cautious sentiment before such an event. A well-known trader, Skew, said the market is still in a spending mood despite the fluent changes we’re seeing today like reduced interest and risk being cut ahead of the FOMC update.

However, Skew hinted that it wouldn’t be difficult to shift momentum back in favor of the bulls. Other market whispers noted a ‘gap’ still waiting to be filled in Bitcoin’s futures markets, standing around $102,000. Some traders believe that the BTC/USD could fill this during the FOMC announcement. While not every gap gets filled, this one seems to have some potential, according to GalaxyTrading.

Remember, though, all investment and trading involve risk, so it’s essential you do your homework before making a decision.