To The Moon

$CME Bitcoin - main 2412(BTCmain)$ cross over $103K level at time of this writing, but what might have create this increase over the weekend.

As investors have turned in mixed performance for the equities market, could it be some of their funds are following into the crypto space?

Fed Rate Cut Already Priced In The Equities Market

The Federal Reserve is widely expected to cut borrowing costs when it meets next Wednesday, and officials could shed light on how recent economic data might affect their decisions on interest rates in the new year.

Financial markets are pricing in a 96% chance the Federal Reserve will cut the fed funds rate by a quarter percentage point to a range of 4.25% to 4.5% according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data. In the year ahead, such rate reductions could be sparse.

The Fed's rationale for cutting rates has diminished recently in the wake of reports showing inflation has stayed stubbornly above the Fed's goal of a 2% annual rate, while jobs remain relatively plentiful. The Fed reduced its benchmark interest rate in September and November after holding it at a two-decade high for more than a year in order to subdue the post-pandemic burst of inflation.

Bitcoin Transactions Showing Signs Of Increase

If we looked at how the transaction on the Bitcoin network have been performing, we are experiencing a decline since Bitcoin crosses $100K but yet began its descend shortly.

So what is actually happening to the Bitcoin transactions, as I have observed that there seem to show some signs of an increase in the transactions, and this might bore well for the crypto currency, and investors could take some time to look at some of the promising crypto stocks.

$MicroStrategy(MSTR)$ $Coinbase Global, Inc.(COIN)$ $Hut 8 Mining Corp(HUT)$ $MARA Holdings(MARA)$

Increase in Number Of Active Addresses Means More Buying

If we looked at the number of active addresses on the Bitcoin network, we will discover that there are some increase when Bitcoin prices went up, this could mean that investors are going into the market with more fund inflows.

This might further push the price of Bitcoin up.

Summary

From what I observed, it looks like this week, investors might be looking at the crypto-currency as a form of defensive strategy as the equities market already priced in a 25 basis points cut for December, so we might not see much impact unless Fed decide to hold back this cut and pushed to 2025 first quarter.

Inflation is also showing signs of creeping back, though small, and with the tariffs risks come January, I would be looking to adjust our portfolio to play a bit defensive with crypto stocks or crypto.

Appreciate if you could share your thoughts in the comment section whether you think Bitcoin would continue to cross over $105K before we enter 2025.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.