In the early hours of November 15, Bitcoin tested levels below $87,000. The catalyst was remarks by Federal Reserve Chair Jerome Powell about the lack of urgency in easing monetary policy.
At the time of writing, the price had returned to $88,000. The daily decline rate decreased to 1.2%.
“The economy is not giving any signals that we need to hurry. The trajectory of interest rate changes depends on how incoming data and economic prospects develop,” Powell stated.
The Fed Chair’s comments reduced the likelihood of a key rate cut at the December 16 meeting from 82.5% to 58.9%.
The probability of a pause in easing policy was also reinforced by producer price data. A consumer inflation report released the previous day indicated no further progress in its reduction.
Matthew Sigel, Head of Digital Asset Research at VanEck, predicted Bitcoin’s rise to $180,000 over the next two quarters due to the absence of technical resistance.
“It’s just getting started,” the expert stated.
Sigel referred to an increase in calls from investment advisors who either do not hold Bitcoin or wish to increase their holdings, which could lead to increased flows into the asset.
According to the expert, VanEck expects a repeat of the pattern seen after the 2020 elections, when the price of the leading cryptocurrency doubled from November to the end of the year. Several indicators tracked by the company “are still flashing green in favor of the rally continuing,” he added.
Earlier, Bernstein urged investors to “add crypto assets to their portfolios as soon as possible.” They recommended acquiring a basket of digital assets, including BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE, and LINK.
Back in previous reports, former BitMEX CEO Arthur Hayes reiterated his forecast for Bitcoin’s rise to $1 million.