Bitcoin($BTC) breaks through $94,500 during trading... Ethereum($ETH) surges 9%, with rate cut expectations fueling the bull market

Bitcoin (BTC) temporarily broke through $94,500 (approximately 138.7 million KRW) during intraday trading, attracting widespread market attention. Ethereum (ETH) also surged by 9%, demonstrating a significant upward trend among major altcoins. Analysts believe that market expectations of a Fed rate cut are the primary background driving this round of gains.

Before the release of Federal Reserve Chair Jerome Powell’s interest rate statement on December 10 (local time), the cryptocurrency market had shifted to an optimistic sentiment. According to data from prediction market platform Polymarket, the probability of the Fed “cutting interest rates by 0.25 percentage points” has risen to 96%. Expectations of rate cuts have stimulated risk appetite in the market, thereby driving the rise of the entire cryptocurrency market, including Bitcoin.

After the sharp increase, Bitcoin experienced a slight correction, but the daily gain remained around 3%, staying at the level of $93,000 (approximately 136.75 million KRW). Bitcoin’s market capitalization has expanded to about $1.85 trillion (approximately 2,720 trillion KRW), accounting for approximately 55.38% of the overall cryptocurrency market.

The most notable coin in the market today is Ethereum. ETH rose over 9% within 24 hours, reaching about $3,350 (approximately 4.92 million KRW). Cardano (ADA) also soared 12%, breaking through the $0.47 (approximately 690 KRW) mark. Additionally, Avalanche (AVAX), Polkadot (DOT), Internet Computer (ICP), Hyperliquid, Dogecoin (DOGE), and others generally increased by 5% to 8%. On the other hand, Pi Network, Bittensor (TAO), TRON (TRX), and Bitcoin Cash (BCH) experienced slight declines.

The total market capitalization of the entire cryptocurrency market is approximately $3.26 trillion (about 4,793 trillion KRW), growing by 3.3% in one day. This directly indicates how quickly investment sentiment reacts in the interest rate-sensitive digital currency market.

As prices continue to surge, experts believe that the short-term direction may change depending on the actual policy tone of the Federal Reserve and the market response after the announcement. Some point out that if a rate cut becomes reality, it could create a favorable environment for digital assets like Bitcoin, but excessive buying could also be an opportunity for short-term profit-taking, requiring vigilance.

Summary by TokenPost.ai

🔎 Market Interpretation

The likelihood of a Fed rate cut has stimulated risk appetite, driving the entire crypto market, including Bitcoin, to rise together.

💡 Strategy Highlights

In the short term, a bull market based on rate cut expectations may continue. However, profit-taking might occur after the announcement, so diversifying risk is crucial.

📘 Terminology Explanation

• Rate Cut: A policy where the central bank lowers the base interest rate, aiming to boost the economy through stimulating investment and consumption.

• Market Cap: Total circulating supply of cryptocurrency × current price. An indicator of market size.

TP AI Notes

This article uses a language model based on TokenPost.ai to summarize the content. There may be omissions of main text or inconsistencies with facts.