{"id":19542,"date":"2024-12-14T19:22:36","date_gmt":"2024-12-14T17:22:36","guid":{"rendered":"https:\/\/forklog.com\/en\/central-bank-policies-support-bitcoins-100000-level-says-expert\/"},"modified":"2024-12-14T19:22:36","modified_gmt":"2024-12-14T17:22:36","slug":"central-bank-policies-support-bitcoins-100000-level-says-expert","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/central-bank-policies-support-bitcoins-100000-level-says-expert\/","title":{"rendered":"Central Bank Policies Support Bitcoin&#8217;s $100,000 Level, Says Expert"},"content":{"rendered":"<p>Bitcoin maintains the psychological threshold of $100,000, buoyed by investors&#8217; high risk appetite, which is fuelled by central banks&#8217; monetary easing. This view was expressed by Jag Kuner, head of derivatives at Bitfinex, in a conversation with <a href=\"https:\/\/www.theblock.co\/post\/330761\/bitcoin-holds-around-100000-as-central-bank-easing-fuels-investor-optimism\">The Block<\/a>.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201cThe <span data-descr=\"European Central Bank\" class=\"old_tooltip\">ECB<\/span> and the People&#8217;s Bank of China (PBOC) recently cut rates for the first time in 14 years. A rate cut by the <span data-descr=\"Federal Reserve System of the USA\" class=\"old_tooltip\">Fed<\/span> could improve liquidity conditions globally,\u201d the expert noted. \u201cThis easing could stimulate capital inflow into risk markets, including cryptocurrency.\u201d<\/cite><\/p><\/blockquote>\n<p>The ECB <a href=\"https:\/\/www.ecb.europa.eu\/press\/pr\/date\/2024\/html\/ecb.mp241212~2acab6e51e.en.html\">reduced<\/a> interest rates by 25 basis points following its meeting on December 12. Meanwhile, the regulator is not yet ready to declare victory over inflation, stated Christine Lagarde, head of the monetary institution.<\/p>\n<p>The key rate determines the cost of money for banks and, consequently, the cost of loans for businesses and individuals.<\/p>\n<p>Speculation is growing regarding the prospects of further monetary policy easing by the PBOC. Some Wall Street players, such as Goldman Sachs and Morgan Stanley, anticipate further rate cuts in 2025\u2014amounting to a total of 40 basis points.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/china_int_rate.webp\" alt=\"china_int_rate\" class=\"wp-image-247716\"\/><figcaption class=\"wp-element-caption\">Dynamics of the PBOC&#8217;s key rate. Data: <a href=\"https:\/\/tradingeconomics.com\/china\/interest-rate\">Trading Economics<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">What about the Fed&#8217;s rate?<\/h2>\n<p>Many market participants are awaiting the Fed&#8217;s key rate decision\u2014the <span data-descr=\"Federal Open Market Committee of the USA\" class=\"old_tooltip\">FOMC<\/span> meeting is scheduled for December 18.<\/p>\n<p><script async src=\"https:\/\/telegram.org\/js\/telegram-widget.js?22\" data-telegram-post=\"forklog\/41387\" data-width=\"100%\"><\/script><\/p>\n<p>Kuner noted that the high likelihood of a 25 basis point cut, along with stimulus measures in the EU and China, has bolstered optimism in risk asset markets, including cryptocurrencies. This, in turn, could contribute to a \u201cSanta rally,\u201d pushing Bitcoin and other coins higher.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"497\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/CME-4-1024x497.png\" alt=\"CME-4\" class=\"wp-image-247717\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/CME-4-1024x497.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/CME-4-300x146.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/CME-4-768x373.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/CME-4.png 1509w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The probability of a Fed rate cut on December 18 is 96%. Data: <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\">CME FedWatch<\/a>.<\/figcaption><\/figure>\n<p>According to the specialist, the likelihood of a bull run resuming has increased following the recent cascade of liquidations in derivatives markets.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201cNow that over-leveraged longs have been removed from the markets, the foundation is set for the next phase, which will begin in the coming weeks,\u201d concluded the expert.<\/cite><\/p><\/blockquote>\n<p>At the time of writing, Bitcoin is trading around $101,580. The dominance index of the first cryptocurrency is <a href=\"https:\/\/www.coingecko.com\/en\/global-charts\">52.9%<\/a>.<\/p>\n<p>In November, annual inflation in the US was 2.7%, aligning with market expectations.<\/p>\n<p>Earlier, specialists at Matrixport identified a favourable macroeconomic environment as one of the factors for the first cryptocurrency&#8217;s rise to $160,000 by 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin maintains the psychological threshold of $100,000, buoyed by investors&#8217; high risk appetite, which is fuelled by central banks&#8217; monetary easing. This view was expressed by Jag Kuner, head of derivatives at Bitfinex, in a conversation with The Block.<\/p>\n","protected":false},"author":1,"featured_media":19541,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,1410,1249,1734],"class_list":["post-19542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-ecb","tag-federal-reserve-system","tag-peoples-bank-of-china"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=19542"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/19541"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=19542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=19542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=19542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}