FOMC

bullish

Bitcoin

Reserve

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>On December 18, the upcoming FOMC meeting could lead to a new interest rate cut of 25 bps.</li> 
 <li>Bitcoin hit a new ATH above $106,000 earlier today, boosted by multiple factors amidst an optimistic market.</li> 
</ul> 
<p>Today, Bitcoin reached a new ATH above $106,400, ahead of this week’s Federal Open Market Committee meeting which could lead to a new interest rate cut, according to predictions.</p> 
<p>BTC’s price rally was sustained by multiple factors including Trump’s confirmation of a US BTC reserve, continued flows in BTC ETFs, and MicroStratgy’s addition to the Nasdaq 100 Index on Friday.</p> 
<h2 id="btc-hits-a-new-ath-ahead-of-fed-s-decision">BTC Hits a New ATH Ahead of Fed’s Decision</h2> 
<p>At the moment of writing this article, BTC is trading above $105,000, up by over 3% today.</p> 
<p>Earlier, the digital asset reached a new ATH above $106,000, hitting a market cap of $2.11 trillion.</p> 
<figure id="attachment_55220" aria-describedby="caption-attachment-55220" style="width: 100%" class="wp-caption alignnone">
 <a href="https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021.jpeg"><img loading="lazy" decoding="async" class="wp-image-55220 size-full" src="https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021.jpeg" alt="BTC price in USD today" width="1200" height="800" title="Bitcoin Price Hit a New ATH Above $106K Ahead of FOMC Meeting 27" srcset="https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021.jpeg 1200w, https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021-300x200.jpeg 300w, https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021-1024x683.jpeg 1024w, https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021-768x512.jpeg 768w, https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021-750x500.jpeg 750w, https://crypto.ro/en/wp-content/uploads/2024/12/BTC_1D_graph_coinmarketcap-2024-12-16T092643.021-1140x760.jpeg 1140w" sizes="(max-width: 1200px) 100vw, 1200px"></a>
 <figcaption id="caption-attachment-55220" class="wp-caption-text">
  BTC price in USD today
 </figcaption>
</figure> 
<p>Now, BTC’s market cap is $2.08 trillion.</p> 
<p>BTC rose to a new ATH earlier as investors are waiting for the US Fed’s decision regarding a new interest rate cut. The FOMC meeting is scheduled to take place on December 18, and according to <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="nofollow noopener" target="_blank">CME Group</a>, the possibility of a new rate of 25 bps is now 97.1%.</p> 
<figure id="attachment_55221" aria-describedby="caption-attachment-55221" style="width: 100%" class="wp-caption alignnone">
 <a href="https://crypto.ro/en/wp-content/uploads/2024/12/16dec.png"><img loading="lazy" decoding="async" class="wp-image-55221 size-full" src="https://crypto.ro/en/wp-content/uploads/2024/12/16dec.png" alt="CME Group data" width="1535" height="704" title="Bitcoin Price Hit a New ATH Above $106K Ahead of FOMC Meeting 28" srcset="https://crypto.ro/en/wp-content/uploads/2024/12/16dec.png 1535w, https://crypto.ro/en/wp-content/uploads/2024/12/16dec-300x138.png 300w, https://crypto.ro/en/wp-content/uploads/2024/12/16dec-1024x470.png 1024w, https://crypto.ro/en/wp-content/uploads/2024/12/16dec-768x352.png 768w, https://crypto.ro/en/wp-content/uploads/2024/12/16dec-750x344.png 750w, https://crypto.ro/en/wp-content/uploads/2024/12/16dec-1140x523.png 1140w" sizes="(max-width: 1535px) 100vw, 1535px"></a>
 <figcaption id="caption-attachment-55221" class="wp-caption-text">
  CME Group data
 </figcaption>
</figure> 
<p>A new interest rate cut in the US would be positive for BTC’s price, as historical rate cuts have boosted the value of the digital asset, as <a href="https://www.cnbc.com/2024/12/16/crypto-market-today.html" rel="nofollow noopener" target="_blank">CNBC</a> notes in a recent article.</p> 
<p>Lower interest rates also imply a weakening dollar and growing money supply – both these factors have demonstrated long-term correlations with BTC so far.</p> 
<h2 id="other-btc-price-triggers">Other BTC Price Triggers</h2> 
<p>Bitcoin’s price rally was sustained by continued inflows in BTC ETFs in the US which saw constant influxes since November 27.</p> 
<p>The crypto products recorded a <a href="https://sosovalue.com/assets/etf/us-btc-spot" rel="nofollow noopener" target="_blank">cumulative net flow</a> of $35.6 billion since their January launch, surpassing the important $20 billion mark much faster than gold.</p> 
<p>BTC’s price rally was also fueled by <a href="https://crypto.ro/en/news/microstrategy-becomes-1st-bitcoin-centric-company-to-join-the-nasdaq-100-index/">MicroStrategy’s addition</a> to the Nasdaq 100 Index, an achievement that will offer exponential exposure to BTC to new potential investors.</p> 
<p>MicroStrategy became the first Bitcoin-centric company in the world to be included in the Nasdaq 100 Index, setting a possible precedent for others to follow in its footsteps.</p> 
<p>Also, the crypto market is filled with optimism stemming from the new upcoming Trump administration, especially since the new US President has recently <a href="https://crypto.ro/en/news/trump-confirmed-upcoming-us-bitcoin-reserve-15t-market-cap-surge-predicted/">confirmed</a> the creation of a BTC Reserve in the US.</p> 
<p>All these bullish moves set the stage for a <a href="https://crypto.ro/en/news/bitcoin-to-hit-160000-and-surpass-8-adoption-threshold-in-2025/">new golden era</a> for Bitcoin and the entire crypto industry in 2025.</p>

Bitcoin Price Hit a New ATH Above $106K Ahead of FOMC Meeting

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