Bitcoin/USD: Ahead of the expected Fed rate cut, Bitcoin Sets a New Record Above $106,000

Key takeaways:

- Bitcoin rises to $106,000 per share.

- Cryptocurrency markets are fixated on Fed rate reduction

- Ether jumps 4% to reach near $4,000.

 TradingView's graphic

At least 25 basis points in an interest rate cut is being priced into the market. But what if the Fed decides not to make a cut?

Prices of bitcoin After late-weekend pump rocked the markets' animal spirits, BTCUSD surged to a new record in early Monday. After hovering over $100,000 in price for some days, the original coin's price surged toward a new all-time record of $106,000 per share and increased market capitalization to around $2.1 trillion. Here, the trend is bullish as traders gear up ahead of the final meeting between the Federal Reserve in the year 2024. What's that about?

It so happens that this Tuesday and Wednesday are when the US central bank - the Fed, for shorthand- meets to decide whether they shall cut rates. Markets expect that dip as they throw money on riskier investments - now set to be cheaper- once lower interest rates prevail, on earlier guidance, that their policymakers will certainly go ahead lowering borrowing costs at least 25 basis points. Here, however lies a hitch in all this. What if rates didn't drop?

As is the case with any markets, the cryptocurrency markets are naturally optimistic. That means that traders may get quite upset and that worry may trigger a selloff if the Fed decides to pass on the cut. But that's an extreme scenario; latest inflation figures were in line with expectations. which makes the probability of a rate cut this week even more likely. And not just Bitcoin, a number of tokens rallied in expectation of the rate cut. Ether added 4% and pushed it nearer to the vital $4,000 level.

By including relevant keywords and linking to related articles, the rewritten content aims to provide comprehensive information while enhancing search engine optimization for CryptoTelegraphs.

Join Telegram Channel For Daily New update: https://t.me/cryptotelegraphs_updates