CashNews.co
BTC Revisits $97k on Fed Rate Cut Expectations
On Wednesday, US economic indicators fueled bets on a December Fed rate cut. The Core PCE Price Index rose 0.3% month-on-month in October, mirroring September’s increase. However, year-on-year, the Core PCE Price Index increased to 2.8% in October, up from 2.7% in September.
The October figures suggested a sticky inflation environment. Nevertheless, the chances of a Fed rate cut increased on Wednesday, boosting demand for US BTC-spot ETFs and BTC. According to the CME FedWatch Tool, the probability of a Fed rate cut rose from 59.4% on November 26 to 64.8% on November 27.
US BTC-Spot ETF Market Ends Two-Day Outflow Streak
The US BTC-spot ETF market reported net outflows of $122.8 million on Tuesday, November 26. However, rising expectations for a December rate cut supported a pickup in demand for BTC-spot ETFs. According to Farside Investors:
- On Wednesday, Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $40.2 million.
- Bitwise Bitcoin ETF (BITB) saw net inflows of $48.0 million.
- Grayscale Bitcoin Mini Trust reported net inflows of $12.0 million.
Excluding flow data for iShares Bitcoin Trust (IBIT), net inflows totaled $103 million.
Supply-demand trends remain crucial for BTC. Expectations of the Trump administration making BTC a US strategic reserve asset remain a BTC tailwind.
US government demand for BTC could impact supply, supporting bullish BTC price trends. Significantly, the US government could become a BTC HODLER, mitigating oversupply risk. The US government currently holds 208,109 BTC, equivalent to $20.03 billion.
Julio Moreno, Head of Research at CryptoQuant remarked on recent BTC price trends, saying,
“Bitcoin demand growth is accelerating again after the recent price correction. Demand expansion is what will get Bitcoin higher.”
Bitcoin (BTC) Price Prediction
On Wednesday, BTC gained 4.32%, reversing a 1% loss from Tuesday, closing at $95,883.
BTC price trends hinge on Trump’s nominations and BTC-spot ETF market flows. Pro-crypto nominations for the SEC and CFTC Chairs bolster expectations of BTC becoming a strategic reserve asset, potentially boosting BTC demand.
Follow the latest on regulatory changes and their game-changing impact on crypto markets.