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BTC/USD: Bitcoin Is Back Above $100,000 as Crypto 

BTCUSD−1.27%

Key points:

• Bitcoin steady near $100,000
• Inflation hints at rate cut
• What has any of that got to do with Bitcoin?
  
  It is forecasted that interest rates will decline next week by a quarter point and that may well make Bitcoin cheaper to traders.

• Bitcoin prices (BTC/USD) were back above $100,000 per coin after the inflation numbers on Wednesday stoked expectations for a rate cut next week from the Fed. The upside swing first arrived to the stock market anew with the Nasdaq Composite surpassing the 20,000 point mark for the first time. It didn’t take long for this optimism to transfer over to the crypto sphere and pump major tokens back to slight gains from a couple of days of stagnation.
• Bitcoin and the rest of the crypto market should benefit immensely from another rate cut. As digital assets are integrated deeper into the traditional financial systems, they become more sensitive to the economic messages. Lower rates are usually achieved when borrowing cost is reduced, hence, lays pressures on the business to borrow and expand. Consumers are more confident to spend more boldly and traders… well, they can more easily stuff the greens into risk assets.
• And with that liquidity increases and the availability of money enhances the circulation of cash within the system. It all depends on the Fed meeting taking place on December 17-18 when officials are expected to trim the benchmark interest rate by 25 bps. Prepare for ranges to persist right up to the occasion not just within bitcoin but also other major tokens. Ethereum was 2.4 percent up this morning and was being sold at about $3,930 per coin.