Bitcoin Consolidates as Altcoins Lead Crypto Market Rally

Bitcoin (BTC) has remained relatively quiet over the past week, hovering around $35,000, while altcoins have taken the lead in driving the crypto market rally over the weekend.

Fed Interest Rate Cuts Expected by March 2024

After the US reported lower-than-expected employment figures for October 2023, analysts are becoming more bullish on the Federal Reserve (Fed) pivoting sooner than anticipated in 2024. Some analysts now believe there is a higher likelihood of rate cuts as early as March 2024.

This potential shift in monetary policy could result in a significant rally for risk-on assets like equities and cryptocurrencies. It is worth noting that the next Bitcoin halving is also expected to occur around April 2024, which could further fuel the price surge.

Predictions for Fed Interest Rates

The chances of the Fed reducing the headline interest rate by 25 basis points below current levels at its March meeting increased to 25.9% on Friday, up from 12.9% on Thursday, according to the CME FedWatch Tool.

Fed-fund futures indicate a 66.5% probability that interest rates will remain unchanged throughout the March meeting. The probabilities of rates remaining steady are at 95.4% for December and 89.4% for January.

There is no chance of a rate cut at either meeting, but there is a 10.3% likelihood of a rate hike in January.

Analyst Predicts Bitcoin Price Rally

While Bitcoin has been consolidating around $35,000, analyst Ali Martinez highlights a significant milestone: over 700,000 new BTC addresses were generated in a single day. This growth in the BTC network is often considered a reliable indicator for price predictions.

With Bitcoin maintaining positive short-term momentum, CrediBull Crypto is optimistic that the asset could continue to gain traction and potentially reach the psychologically significant threshold of $40,000. In such a scenario, a new all-time high for Bitcoin may be within reach.

Strong Investor Confidence in Crypto Market

The crypto market has seen capital inflows exceeding $10 billion over the past month, indicating strong investor confidence. This surge in capital suggests a growing interest in cryptocurrencies as an investment.

Hot Take: Bitcoin Primed for a Mega Rally

Despite its recent consolidation, Bitcoin is showing signs of building momentum for a potential mega rally. Analysts predict that if the asset surpasses the $40,000 mark, it could embark on a journey towards a new all-time high.

Furthermore, with increasing interest from investors and positive market indicators like the growth in BTC addresses, Bitcoin’s price rally may be on the horizon.

Bhushan is a FinTech enthusiast who is interested in economics and finance. He has a keen interest in emerging blockchain technology and cryptocurrency markets. The views expressed in this article are his personal opinion and are subject to market conditions. It is important to conduct your own research before investing in cryptocurrencies. The author and publication are not responsible for any financial losses you may incur.