bitcoin Gains Momentum Amidst Dovish Fed & Regulatory Progress
Bitcoin experienced a slight correction,falling 0.1% after recent gains propelled prices to a monthly high near $118,000. This upward trend is being fueled by a shift towards easier monetary policy from the Federal Reserve adn increasing bullish sentiment in the futures market.
The Fed’s 25-basis-point rate cut on Wednesday, with signals of further reductions to come, has boosted risk appetite across markets, extending into digital assets. CME’s FedWatch Tool now indicates an 80% probability of an additional 50-basis-point cumulative cut before year-end, further supporting a bullish outlook for cryptocurrencies.
this positive sentiment is reflected in broader market gains, with the S&P 500, Nasdaq 100, Dow Jones, and Russell 2000 all reaching simultaneous record highs – a first since 2021. While concerns about technology stock valuations persist, the non-recessionary nature of these rate cuts is maintaining overall optimism.
Crypto markets are mirroring this trend. Coinglass data shows bulls regaining control of bitcoin futures for the first time since Wednesday, with minimal long liquidations, suggesting potential for further price increases. Spot bitcoin ETFs are also seeing renewed inflows after a brief outflow on Wednesday, according to Soso Value.
Bitcoin researcher Axel Adler Jr. estimates a 70% probability of new highs, citing balanced technical conditions (a near-zero Short-Term Holder MVRV Z-Score), strong demand indicated by a contango structure in futures, and continued institutional investment in U.S. spot bitcoin ETFs. While a short-term dip to $114,000 is possible, Adler believes the overall outlook remains strongly bullish.
regulatory developments are paving the way for increased adoption. The SEC has approved a streamlined process for listing exchange-traded products backed by physical commodities like bitcoin and gold, potentially accelerating the launch of new crypto-related products and deepening institutional access and liquidity in the medium term.
