Bitcoin Reclaims $93k as Fed Rate Cut Odds Jump

TL;DR

• BTC is up 7% in the last 24 hours and is now trading above $93k per coin.

• The bullish run comes as analysts expect the Fed to cut interest rates in its upcoming FOMC meeting.

BTC Pumps Above $93k

The cryptocurrency market has recovered from the dip recorded earlier this week, with Bitcoin reclaiming the $93k level. The leading cryptocurrency by market cap added 7% to its value in the last 24 hours and is now trading above $93,300 per coin.

The bullish performance comes as Vanguard announced on Monday that it is set to allow crypto ETFs and mutual funds on its platform, opening up this market to its over 50 million clients.

Vanguard’s move comes the same day Bank of America reportedly told advisers across Merrill, Private Bank and Merrill Edge that clients can now allocate 1%–4% of portfolios to crypto. This will allow over 15,000 advisers to proactively recommend digital-asset products.

Any major catalyst behind the pump is the upcoming Fed interest rates decision, with traders optimistic of a rate cut next week. Data obtained from CME FedWatch shows an 87.2% chance of a 25-basis point cut at the Dec. 10 meeting, up from 63% a month ago. However, only 12.8% of traders are expecting the Fed to hold the current 375–400 bps target range.

Thanks to the recent pump, the total cryptocurrency market cap has reclaimed $3.1 trillion. Bitcoin could be looking to push towards the $97k level in the near term, with the $93k resistance level currently in the way.