Bitcoin hits new high since late August, a day prior to the anticipated US interest rate decision
Bitcoin is on the brink of a significant milestone, with the digital currency trading slightly lower at around $116,200 on the stock market today. The psychologically important $120,000 mark has garnered attention in the crypto community, as it represents a potential breakthrough for Bitcoin.
According to Timo Emden, an expert at Emden Research, investors are warming up for potential rate cuts by the US Federal Reserve. The Fed is expected to lower interest rates for the first time this year on Wednesday, a move that could boost demand for Bitcoin and its peers on the stock market today.
Emden suggests that a new record high for Bitcoin could be around $125,000. He believes that if a sustainable breach of $120,000 occurs, it could pave the way for this new record high on the stock market today.
The recent weak labor market is particularly pointing towards a rate cut by the Fed. The US Federal Reserve is expected to lower interest rates to support the weakening US labor market, with a widely anticipated cut of 0.25 percentage points.
Emden also mentioned hopes that the Fed will ease monetary policy not only on Wednesday but also beyond. In a potential low-interest rate environment, interest-free assets like Bitcoin could regain appeal on the stock market today.
Institutional investor interest could further boost demand for Bitcoin and its peers on the stock market today, according to Emden. Sentiment on the crypto market has been optimistic ahead of the upcoming interest rate decision by the Fed.
It is important to note that Bitcoin surged to nearly $117,000 on the Bitstamp trading platform on Tuesday evening. Regulatory easing is another potential factor for demand for Bitcoin and its peers on the stock market today, according to Emden.
However, the Fed is facing enormous political pressure from US President Donald Trump, who has repeatedly demanded significant rate cuts. The exact impact of these political pressures on the Fed's decision and, in turn, on the crypto market remains to be seen.
Looking ahead, if the $120,000 mark is breached sustainably, it could signal a new era for Bitcoin and the crypto market as a whole on the stock market today.
