Bitcoin surged this week to touch $97,538 on Wednesday — its highest level in two months. Still, the leading cryptocurrency remains 24% below its October record. But the asset is “coiled for a decisive move”, according to a report by research firm Kaiko. After the US’ crypto-friendly pivot last year, Bitcoin investors hoping for new heights will have to look beyond Congress and federal regulators, market observers told DL News. This is what the experts say the big orange coin needs in order to soar agai ...

Bloomberg Bitcoin advanced to a two-month high, finally joining the rally in risk assets and precious metals after spending weeks stuck in a tight range. The original digital asset rose as much as 3.9% to $97,694 on Wednesday, its highest intra-day level since Nov. 14, when it last touched $100,000. Ether, the second-largest token, surged as much as 6%. In options markets, the rally has erased more than half a billion dollars in bearish crypto bets. Most Read from Bloomberg Bitcoin’s jump sent the pri ...

Core Viewpoint - The upcoming interest rate decision by the U.S. Federal Reserve is critical for the long-term bullish trend of risk-on assets like Bitcoin, with current market conditions indicating a potential rate cut [1][2]. Interest Rate Decision - The interest rate decision on September 17 is significant as it coincides with the S&P 500 index, Bitcoin, and gold reaching near all-time highs [2]. - Core inflation is above 3.10%, and there is a weakening labor market, with a notable annual revision showing a drop of 911,000 from initial estimates [2]. Market Expectations - Current odds for a 25 basis point rate cut are approximately 94% according to CME's FedWatch tool, while prediction market Myriad indicates an 88% chance [3]. Short-term vs Long-term Impacts - Experts agree that a quarter-point rate cut would likely have a long-term bullish impact on risk-on assets, including Bitcoin, but the immediate market reaction will depend on comments made by Fed Chair Powell during the briefing [4]. - Analysts highlight the importance of the dot plot, suggesting that a rate cut without a significant downward revision could lead to a pullback in altcoins due to high open interest [5]. Speculative Activity - Anticipation of a rate cut has led to increased speculative activity, resulting in stretched valuations across various asset classes [6]. - A hawkish surprise from Powell could complicate the Fed's price stability mandate [6]. Bitcoin's Long-term Valuation - Historical data shows that Bitcoin's one-month returns post-rate cut are unpredictable, but three-month estimates indicate a bullish outcome 62% of the time with an average gain of 16.50% [7]. - HashKey Capital projects Bitcoin could reach $700,000 by the end of 2035, assuming a 10% CAGR in gold prices, suggesting a macro narrative of Bitcoin catching up with gold over the next decade [7].