Satoshi

Wednesday

Bitcoin

Reversal

Spot

Bitcoin hit a record high of $108,000 on December 17, continuing its strong rise, started in 2023. The price of bitcoin has increased by nearly 150% this year, driven by higher demand and slower growth in supply.
The Federal Reserve and other central banks cutting interest rates have helped push the price of bitcoin.&nbsp;
According to <a href="https://sosovalue.com/assets/etf/us-btc-spot" target="_blank" rel="noopener noreferrer nofollow">SoSoValue</a>, Bitcoin ETFs gathered over $36 billion in assets, bringing the total to over $120 billion. This shows that Bitcoin is becoming more popular among investors, competing with gold as an investment choice.
Eric Balchunas <a href="https://x.com/EricBalchunas/status/1869032761207742717?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1869032761207742717%7Ctwgr%5E1e22621c6dbf6b8511d76338daf59dda8eb8a2b0%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcrypto.news%2Fbitcoin-price-may-see-a-harsh-reversal-after-fed-decision%2F" target="_blank" rel="noopener noreferrer nofollow">noted</a> that Bitcoin ETFs (spot, futures, and leveraged) have $130 billion in assets, just surpassing gold ETFs at $128 billion. Spot Bitcoin ETFs alone have $120 billion, close to gold’s $125 billion. He finds it remarkable how close they are in just 11 months.
Bitcoin supply growth has slowed due to increased mining difficulty. According to CoinGlass data, the amount of Bitcoin left on exchanges has continued to decrease this year.
This supply-demand imbalance could drive Bitcoin prices higher over time, with growing interest from governments and corporations, as seen with Microstrategy’s rise to a $90 billion company.
The Federal Reserve’s interest rate decision on Wednesday could impact Bitcoin. Economists expect a 0.25% rate cut, which often benefits Bitcoin and other risky assets.&nbsp;
However, if the Fed stays cautious due to inflation concerns, it could slow Bitcoin’s price growth. Recent inflation data shows ongoing challenges, with the Consumer Price Index rising to 2.7% and the core CPI at 2.2%.
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Bitcoin has been showing strong upward momentum recently, staying above key moving averages, indicating that bulls are in control. The price has also formed a cup and handle pattern, suggesting more potential gains.
However, the chart shows a rising wedge pattern, which could signal a reversal. Additionally, bearish divergence is seen in the MACD and Relative Strength Index, meaning a brief pullback to around $103,000 could happen after the Federal Reserve’s interest rate decision on Wednesday.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/12/17/satoshi-nakamotos-bitcoin-fortune-hits-117-billion-mark/" target="_blank" rel="noopener noreferrer nofollow">Satoshi Nakamoto’s Bitcoin Fortune Hits $117 Billion Mark</a>
</blockquote>

Bitcoin Price Faces Potential Reversal After Fed’s Decision

The Crypto Times

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