Investors Believe the US Fed Will Pause Rate Hikes + More News
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According to the latest Bitfinex report, “financial markets are now leaning towards a potential interest rate cut by the Fed [Federal Reserve], with the CME FedWatch Tool indicating a 78 percent likelihood of such a move by the end of their May meeting in 2024. This is a notable shift from just a month ago when the probability was pegged at 41 percent.”
The analysts added that “investors currently believe the Fed will pause its rate hikes, viewing its current policy as sufficiently restrictive to moderate growth and stabilise prices without triggering a recession. This delicate balance is crucial for the US economy as it navigates through uncertain economic conditions.”
Meanwhile, Bitcoin (BTC) reached a new year-to-date high, reaching over $41,646 on December 4, surpassing its previous trading range’s upper limit, to which it had been confined for several weeks. The new peak came after BTC had seen its strongest monthly close since March 2022.
BTC/USD Weekly Chart
Bitfinex analysts said that this upward movement can be attributed to a combination of factors, including a notable shift in the dynamics of the futures market compared to the spot market.
There was significant buying activity in the market, particularly aimed at absorbing the supply above $37,500, near the upper boundary of its recent trading range, they said. On December 1, BTC was still hovering below the range high.
Cumulative Volume Delta (CVD) for the futures market, which measures BTC’s mid- to long-term buy and sell pressure by comparing buying and selling volume over time, was more
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