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Polymarket Bets on 25 BPS Rate Cut: Bitcoin Crosses $100K

Polymarket Bets on 25 BPS Rate Cut: Bitcoin Crosses $100K

CoinEditionCoinEdition2024/12/11 16:00
By:Anisha Pandey

Polymarket predicts that the Fed could introduce a 25 bps rate cut next week. The rate cut timed with Christmas bonuses could be the second wind that BTC needs. 342 wallets with over 100 BTC were created when BTC dropped a few days ago.

  • Polymarket predicts that the Fed could introduce a 25 bps rate cut next week.
  • The rate cut timed with Christmas bonuses could be the second wind that BTC needs.
  • 342 wallets with over 100 BTC were created when BTC dropped a few days ago.

Polymarket is pricing in a 25 BPS rate cut in the US, predicting the Federal Reserve to announce the decision. This anticipated cut, projected during high inflation, could shift market sentiment significantly, with traders preparing for impacts across traditional and digital assets.

Prominent analyst Crypto Rand suggested in a post on X (formerly Twitter) that such a rate cut could revive the crypto market, pushing Bitcoin well above its all-time high of $103,900.

Polymarket Bets on 25 BPS Rate Cut: Bitcoin Crosses $100K image 0 Polymarket Bets on 25 BPS Rate Cut: Bitcoin Crosses $100K image 1

Rate Cuts and Bitcoin’s $100K Milestone

On the other hand, rate cuts often boost Bitcoin’s appeal by lowering yields on traditional assets, prompting investors to seek riskier alternatives like cryptocurrencies. As inflation in the U.S. remains stubbornly high, reports indicate the likelihood of a third rate cut this year. As pointed out in a report by the Guardian, the possibility of a third rate cut this year is high as the rate of inflation in the US barely dropped in November.

Read also: US ETFs Become the Biggest Bitcoin Holders, Beating Satoshi

Federal Reserve Chair Jerome Powell also commented that the agency must balance reducing policy restraints carefully to avoid weakening economic activity while still addressing inflation. He reiterated confidence in achieving a “sustainable path down to 2%.”

Bitcoin Price Action and Whale Activity

Bitcoin reclaimed the $100K milestone, surging from a daily low of $97,809.99 to a high of $101,913.36, as per CoinMarketCap data .  Although the cryptocurrency currently trades at 2.86% below its all-time high of $103,900, analysts remain bullish.

In a separate X post , crypto analyst Ali Martinez noted that whale activity has increased significantly. Over 342 wallets holding more than 100 BTC were created as prices dipped from $104,000 to $90,000, signaling strong accumulation of the digital asset.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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