Arya News - Bitcoin has entered a renewed phase of volatility, with the Federal Reserve at the cusp of an interest rate decision that would likely decide if the "crypto king" gets to finish the year in the black or the red, veteran markets analyst Adam Sarhan said.
"It’s make or break for bitcoin at this point, with just about three weeks left to the year," Sarhan, founder of capital markets advisory Sarhan Capital, told Sputnik. "A Fed cut would undoubtedly bring calm across markets but a Fed hold could likely hammer bitcoin more than the average asset." The Fed had carried out two quarter percentage point rate cuts back-to-back in September and October. The chance of its policy making committee deciding on a third such cut on Wednesday is as high as 88%, according to a rate prediction tool monitored by US exchange group CME. Despite such odds, markets are still uncertain if growing inflationary pressures will convince the central bank to leave rates in their current range of 3.75%-4%. Once the darling of speculators as it went from a few cents worth to five-digit pricing, bitcoin has increasingly gone mainstream over the years — meaning decisions like Fed rate cuts are beginning to weigh more than ever on its price. After a break above $100,000 in December 2024, bitcoin got to a record high above $126,000 in October. Since then, it has tumbled to $80,000 on a myriad of factors that include shifting US macroeconomic temperatures, an AI-driven selloff on Wall Street and liquidation by bitcoin "whales", or large holders of the coin. In recent days, bitcoin has been trying to secure a foothold in the $90,000s. Year-to-date, it is down 3.5% after finishing 2024 up 120%.