Daily News | BTC Surpassed $108,000, Setting a New Historical High, Market Awaits Fed's Decision to Cut Interest Rates

2024-12-18, 04:03

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## Crypto Daily Digest: BTC ETFs continue to receive large inflows, and the market is waiting for the Fed's decision to cut interest rates tomorrow morning
According to Farside Investors data, the net inflow of US <a  rel="nofollow noopener noreferrer"  href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> spot ETFs was $490 million yesterday. BlackRock IBIT had a net inflow of $737 million, Fidelity FBTC had a net outflow of $128 million, and Grayscale GBTC had a net outflow of $84.7 million.

Yesterday, the net inflow of US <a  rel="nofollow noopener noreferrer"  href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> spot ETF was $9.9 million. The net inflow of Fidelity FETH was $3.9 million, the net inflow of Grayscale ETH was $4.5 million, and the ETFA data of BlackRock has not been updated yet.

**Bloomberg: Traders are waiting for the expected Fed rate cut decision**

According to Bloomberg, Bitcoin took a breath after breaking through $108,000 for the first time, as traders waited for the expected Fed rate cut decision and assessed the <a  rel="nofollow noopener noreferrer"  href="/price/optimism-op" target="_blank" class="blog_inner_link">optimism</a> brought by US President elect Donald Trump's support for cryptocurrency.

Trump has promised to introduce friendly regulatory policies aimed at giving the United States a dominant position in the crypto field and supporting the idea of establishing a strategic national Bitcoin reserve. MicroStrategy's upcoming inclusion in the Nasdaq 100 Index has added momentum to this optimism, as it opens the door for the company to further profit from Bitcoin investments.

The market generally expects the Federal Reserve to implement another 25 basis point interest rate cut on Wednesday, but due to strong US economic growth and inflation risks brought by Trump's broader agenda, the clarity of future policy direction has decreased.

**Ohio State Lawmakers Proposed Bitcoin Reserve Act to Allow State to Purchase BTC**

According to Cointelegraph, an Ohio Congressman has proposed a bill aimed at establishing a Bitcoin fund as part of the state's finances, making it the third state in the United States to do so in just one month.

Ohio House Republican leader Derek Merrin introduced HB 703 on December 17, tentatively named the Ohio Bitcoin Reserve Act. The bill intends to grant state finance officials the power to purchase Bitcoin in "appropriate asset allocation," but does not mandate the purchase of Bitcoin.

Merrin stated in the statement, "The US dollar is rapidly depreciating, and our state finance officials should have the power and flexibility to invest in Bitcoin when determining appropriate asset allocation. Ohio must embrace technology and protect taxes from erosion.”

**Bloomberg analyst: Expected to usher in a wave of crypto ETFs next year, including <a  rel="nofollow noopener noreferrer"  href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> and <a  rel="nofollow noopener noreferrer"  href="/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP</a> funds**

Bloomberg analysts Eric Balchunas and James Seyfart predict that the United States will usher in a wave of crypto ETFs next year, although not all will be launched immediately.

The first to be launched could be a combination ETF of Bitcoin and Ethereum, followed by a <a  rel="nofollow noopener noreferrer"  href="/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a> ETF, then an HBAR ETF, and finally a Solana/XRP ETF (both of which have been marked as securities in pending litigation).

## Market Trends: New coin PENGU goes online, while Altcoins generally experience a pullback
### Market Hotspots
The new coin PENGU has been launched, with a market cap of up to $6 billion at the beginning of the trading session, soaring to around $0.07. The current market cap has fallen to around $1.7 billion; PENGU is a token issued by Puddy Penguin, a well-known NFT project on the ETH chain. The token PENGU is issued on the Solana chain, and there is controversy in the PENGU airdrop community; In addition, the tokens airdropped by NFT projects do not seem to have the opportunity for a spiral upward trend in past market performance. Their tokens lack consumption scenarios, and the most famous APE has fallen from a high of $25 in 2022 to less than $1;

The rise of well-established coins such as LTC, XLM and XRP indicates that the market funds are gradually entering a weak stage, and the short-term market may undergo adjustment.

### Mainstream Coins
BTC broke through $108,000 and reached a new historical high within the day, but has now slightly fallen to around $105,000, while BTCD continues to rise;

ETH fell below $3,900, and the ETH Foundation sold a small amount of 100 ETH again. Coincidentally, many times after the ETH Foundation sold tokens, the market would experience a short-term adjustment;

Altcoins are generally declining, and the market is launching a large number of high-value tokens every day, which has dampened the enthusiasm of funds.

## Macro News: The three major US stock indices collectively closed down, and the Fed FOMC meeting was held today
On the eve of the Federal Reserve's latest interest rate decision, the three major stock indexes in the US stock market collectively closed down, with the S&P 500 index falling 0.39% to 6,050.61 points; The Dow Jones Industrial Average fell 0.61% to 43,449.90 points; The Nasdaq index fell 0.32% to close at 20,109.06 points. The benchmark 10-year Treasury yield is 4.40%, while the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 4.25%.

For global investors, especially those in the US stock market, the latest interest rate decision to be released by the Federal Reserve has become a top priority for their attention. Market institutions generally expect the Federal Reserve to cut interest rates by 25 basis points as scheduled, but the pace of subsequent rate cuts may slow down. Debon Securities believes that there is a high probability that the Federal Reserve will implement a "hawkish interest rate cut" this time, announcing a 25 basis point rate cut while releasing a signal to slow down the pace of interest rate cuts in the future. It is important to keep an eye on the anonymous voting in this "dot matrix".

Debon Securities predicts that the Federal Reserve's outlook for interest rate cuts in 2025 will fall back to 2 to 3 times, and the economic data outlook may improve the forecast for the inflation center in 2025. The outlook for the economy and unemployment rate may also be slightly adjusted. For the US stock market, the overall market may face the risk of a pullback, but compared to small and medium-sized indexes, the resilience of the overall market index may be better.

<div class="blog-details-info">
<div>Author:**Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions. All investments carry inherent risks; prudent decision-making is essential.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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