Bitcoin Price Eyes A New All-Time High Ahead of FOMC

Bitcoin price staged a strong comeback on Wednesday, soon after the release of the US CPI inflation data, gaining another 3.5% and shooting past the crucial resistance of the $100K level. Investors are now looking ahead to the FOMC meeting next week with expectations of another 25 basis points rate cut.

Will FOMC Be A Bullish Catalyst for Bitcoin Price?

The US CPI inflation report on Wednesday fueled optimism across the US equity and the global crypto market. As the CPI numbers were in line with expectations, investors are hopeful of a modest 25 basis points interest rate cut during the FOMC meeting next week.

Experts estimate a 96-97% chance of rate cuts, which could be a catalyst to the thriving U.S. and global economy. Given the strong correlation between crypto and equity markets, the Bitcoin price has seen a quick surge above $100K.

During the Bitcoin consolidation at around $96,000 levels, the BTC whales have done heavy accumulation. According to crypto analyst Ali Martinez, 342 wallets holding more than 100 BTC were created as Bitcoin’s price fell from $104,000 to $90,000. The data suggests that large-scale investors are seizing the opportunity to accumulate Bitcoin at lower prices.

On the other hand, inflows into spot Bitcoin ETFs have also continued at a good pace over the past week. For the last nine trading sessions, the US Bitcoin ETFs have witnessed net positive inflows with BlackRock Bitcoin ETF (IBIT) hitting a fresh milestone crossing over $35 billion in net inflows since inception.

Crypto analyst Ali Martinez has issued a bold prediction for Bitcoin, forecasting a potential rise to $275,000. Martinez’s target is based on a “cup and handle” pattern formation. The analyst advised investors to “buy the dip” but warned against overleveraging.

What’s Next for BTC After Recent Breakout?

Bitcoin price surged past the $94,500 to $98,000 trading range following U.S. inflation data that met expectations, according to 10x Research.

Analysts noted that Bitcoin price often rallies after declining ahead of inflation reports, as stable data tends to subside market concerns about inflation spikes. While Bitcoin’s price may grind higher through year-end, 10x Research expects limited market fireworks as many investors close their books following the FOMC meeting.

However, it notes that altcoins are showing greater relative strength over Bitcoin. Even today, the altcoin sector is seeing a strong surge led by an Ethereum price surge of over 7%, currently trading at the crucial resistance of $3,920. XRP, BNB, SOL, and DOGE have registered modest gains of 4-5% each.