Dollar

bullish

Bitcoin

Impact

Optimism

<p>Bitcoin (BTC) is experiencing renewed momentum, gaining nearly 4% on November 27 to trade near $95,000.</p> 
<p>This price recovery comes after buyers stepped in to halt a dip toward weekly lows, with the cryptocurrency benefiting from macroeconomic developments in the U.S.</p> 
<h3 id="key-economic-influences">Key Economic Influences</h3> 
<p>Recent economic data, including jobless claims and the Federal Reserve’s favored inflation gauge—the Personal Consumption Expenditures (PCE) Index—met market expectations. This has increased market confidence in a potential interest rate cut, with the CME Group’s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="nofollow noopener" target="_blank">FedWatch Tool</a> estimating a 66% chance of a 0.25% reduction next month.</p> 
<p>In response, analysts observed mixed signals. While some highlighted ongoing inflationary pressures, others noted Bitcoin’s resilience in recovering from earlier losses. Increased liquidity in the order books and laddered buyer interest around $85,000 further fueled optimism.</p> 
<p><img decoding="async" src="https://s3.cointelegraph.com/uploads/2024-11/01936e3d-7c7f-7da3-b92b-e25432a789f3" alt="01936e3d 7c7f 7da3 b92b e25432a789f3" title="Bitcoin Breaks $95K Amid Optimism Over Inflation Data and Fed Policy 32"></p> 
<h3 id="100k-and-beyond">$100K and Beyond</h3> 
<p>The $100,000 level remains a focal point for market participants. Some see a significant sell wall at this level as a barrier, while others point to technical indicators like the moving average convergence/divergence (MACD), which is flashing bullish signs.</p> 
<p>Despite the skepticism of short-term gains, longer-term forecasts remain positive. Analysts project a strong 2025 rally driven by several factors:</p> 
<p><strong>Global Money Supply Growth:</strong>&nbsp;The M2 money supply has shown a historic correlation with Bitcoin’s price. Jamie Coutts, chief crypto analyst at Real Vision, expects the global M2 supply to increase significantly, potentially driving Bitcoin to over $132,000.</p> 
<p><img decoding="async" src="https://s3.cointelegraph.com/uploads/2024-11/01936dcc-a636-7516-af1a-7ca872d2eb25" alt="01936dcc a636 7516 af1a 7ca872d2eb25" title="Bitcoin Breaks $95K Amid Optimism Over Inflation Data and Fed Policy 33"></p> 
<p><strong>Dollar Weakness:</strong>&nbsp;The U.S. Dollar Index (DXY) faces resistance, with potential weakness supporting risk assets like Bitcoin.</p> 
<p><img decoding="async" src="https://s3.cointelegraph.com/uploads/2024-11/01936dcd-3bf1-7f6e-9c0f-9d289eaa5455" alt="01936dcd 3bf1 7f6e 9c0f 9d289eaa5455" title="Bitcoin Breaks $95K Amid Optimism Over Inflation Data and Fed Policy 34"></p> 
<p><strong>Trump Administration:</strong>&nbsp;A renewed wave of risk appetite tied to Donald Trump’s recent election victory could create a more favorable regulatory environment for cryptocurrencies.</p> 
<h3 id="microstrategy-s-impact">MicroStrategy’s Impact</h3> 
<p>MicroStrategy’s continued <a href="https://crypto.ro/en/news/microstrategy-expands-bitcoin-holdings-with-5-4-billion-purchase/">Bitcoin acquisitions</a>, backed by its latest $3 billion raise, also contribute to the bullish narrative. With plans to purchase over $40 billion in Bitcoin, the firm has completed only 29% of its 12/21 strategy, leaving room for further accumulation.</p> 
<h3 id="growing-adoption">Growing Adoption</h3> 
<p>Another bullish signal is Bitcoin’s approach to one million daily active addresses, a milestone not reached since 2019. Increased adoption could further support upward price momentum.</p> 
<p>While Bitcoin’s trajectory toward $100,000 faces near-term resistance, its long-term prospects remain promising, underpinned by macroeconomic shifts, institutional buying, and adoption trends.</p>

Bitcoin Breaks $95K Amid Optimism Over Inflation Data and Fed Policy

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