Bitcoin Touches Resistance Amid A Dovish Fed

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Bitcoin Touches Resistance Amid A Dovish Fed

Bitcoin Touches $42,000 Amid A Dovish Fed

During Monday's session, the price of Bitcoin crossed the $42,000 ($42K) resistance level. The sudden appreciation of Bitcoin (BTC) is driven by the rumors that the Federal Reserve will finally cut interest rates next year.

In addition, many experts believe that the approval of BTC-based ETFs is also just around the corner. That's also a factor that hints that the BTC will receive more institutional attention going forward. So that's yet another factor that is playing in favor of Bitcoin.

With an impressive gain of 6.2% in a short period of time, Bitcoin (BTC) can be seen near $41987. Looking back, it appears that the cryptocurrency is continuing its 3-week rally without any interruption. In addition, the recent price level of Bitcoin (BTC) is the highest in almost one year, as it only was last seen in May 2022.

Ethereum (ETH) Gains 4.5%

If we look around, Ethereum (ETH) can be seen near $2264.8 with a gain of 4.5%. As for the stock market, the firms related to crypto are also enjoying the bull run in the crypto market. For example, Coinbase (COIN), which is listed on the NASDAQ exchange, gained 8% during the premarket session.

Similarly, other stocks like MARA and RIOT also jumped by more than 10%. This is a sign that the sentiment of the crypto market is mostly bullish.

For now, most of this recent price action is based on the rumor that the Federal Reserve will move from rate hikes to rate cuts in 2024. As a result, the crypto market has gone up while the US Dollar is struggling in the FX market. As a result, the risky assets are also receiving attention after a long period of time.

According to experts, the December meeting will lead to no change in the interest rate policy. As for the chances of rate cuts next year, there's almost a 50% chance.

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