Key Insights:
- The Bitcoin price rallied more than 5% on Thanksgiving Day, sparking market optimism.
- The surge comes amid soaring Fed rate cut bets and US Stock market rally.
- Analyst predicts BTC price to hit $100k if it clears a key resistance amid the ongoing upward run.
The Bitcoin price Thanksgiving rally has lifted the investors’ sentiment, as evidenced by the current performance of the broader crypto market. BTC has recorded a surge of nearly 5% today, suggesting that the bulls are once again regaining confidence in the asset.
It’s worth noting that the recent brutal crash in the flagship crypto has spooked traders, with many still waiting on the sidelines. Despite that, the recent break over the $90,000 mark suggests that the bull run for Bitcoin USD is far from over.
Meanwhile, the advancement in the asset’s price has also sparked discussions over the potential reason behind the surge today. According to experts, the rally in the US Stock Market and soaring odds of a potential Fed rate cut in December might have helped gains in the Bitcoin price Thanksgiving rally.
On the other hand, the analysts are still maintaining a cautious stance, urging investors to be patient despite the rally. Besides, the market pundits have also highlighted the key resistance and support levels for BTC price, which may shape the future trajectory of the crypto.
Top Reasons Behind Bitcoin Price Thanksgiving Rally
The market participants appear to be shifting focus towards Bitcoin price on this Thanksgiving holiday, which has also boosted the broader crypto space. During writing, BTC price was up more than 5% and exchanged hands at $91,612, jumping from a 24-hour low of $86,316.
This latest surge also came in tandem with a soaring trading volume of 22% to $73 billion, suggesting increased trading activity in the market. This latest surge has also erased its losses from the weekly chart, now showing a return near the flatline.
Fed Rate Cut & Bitcoin ETF Inflow
Meanwhile, the primary reason behind the surge in Bitcoin USD could be attributed to the Fed rate cut hopes. According to the CME FedWatch Tool, the odds of a Fed rate cut in December soared to 85%, which might have fueled the market sentiment.
In addition, market commentator Walter Bloomberg recently said that JP Morgan, which has previously refuted claims of a year-end Fed rate cut, has changed its stance. Now, the bank expects a 25 bps rate cut in December, in line with the market expectations.
As a result of the interest rate cut hope, the US stock market also ended in the green on November 26, let alone the crypto space.
Another potential reason behind the Bitcoin price surge could be the positive fund flow into the US Spot Bitcoin ETF. Over the past two days, the investment instrument has had inflows of $128.7 million and $21.1 million, respectively.
This also suggests that the institutions have regained confidence in the asset. If the fund flow remains stable, it could further boost the Bitcoin USD price higher in the near future.
Bitcoin Price Rally to Continue?
Amid the surge in Bitcoin price on Thanksgiving, market experts have shared critical insights on the future trajectory of the asset. In a recent X post, analyst Ted noted that the recent surge over $89,000 marks a significant milestone for BTC price.
In addition, the expert said that if Bitcoin USD can break through the resistance at $94,000, it could reclaim the $100,000 mark in the near future. On the other hand, if it fails to reclaim the support, a likely dip to $88,000 awaits.
Having said that, the market participants are monitoring the levels closely despite the recent surge in the asset’s price. While a breakout to $100,000 seems feasible, any other negative development could dampen the broader market sentiment.