With bitcoin at $91,000, risk appetite strengthens, but it depends on the Fed's mood.

Source: Exame Original Title: With bitcoin at $91,000, risk appetite strengthens, but depends on the Fed's mood Original Link: This Friday, the 28th, bitcoin continues to recover in the range of $91,000. The largest cryptocurrency in the world fell to $80,000 last weekend. Despite positive expectations, experts point out that the price of bitcoin still depends on the directions the Federal Reserve will take regarding the monetary policy of the United States.

Currently, bitcoin is priced at $91,936, with a 1.1% increase in the last 24 hours, according to CoinMarketCap data. Despite this, the cryptocurrency still has a 7.7% decrease over the last thirty days.

“Bitcoin shows signs of recovery after last week's turbulence, when it was traded near $80,000 on some exchanges. Since then, the asset has risen about 11%, following the recent decline in volatility in both the crypto market and U.S. stocks. Nevertheless, Bitcoin remains under pressure, trading below the 50-day exponential moving average (EMA), currently at $100,550,” said Guilherme Prado, country manager of a cryptocurrency exchange in Brazil.

“A large part of this recent relief comes from the growing expectation that the Federal Reserve may soon begin a cycle of interest rate cuts. However, the broader market direction will depend much more on the tone adopted by Chairman Jerome Powell at the meeting on December 9 and 10 than on the already priced-in 25 basis point cut. If there is a signal of a more aggressive easing in 2025, the market could gain traction and see various assets returning to important technical levels. Otherwise, the current rally may lose momentum quickly,” the executive added.

What is happening in the markets?

“Asian markets close the turbulent month of November with a slight recovery, supported by renewed hopes that the Fed will cut interest rates in December. U.S. Treasury rates continued to decline, the dollar edged slightly lower, and risk appetite has strengthened again,” said André Franco, CEO of Boost Research.

“With this scenario, bitcoin presents a positive short-term outlook for the rest of the day, driven by the expectation of an interest rate cut and the consequent abundant liquidity that tends to favor risk assets such as cryptocurrencies. The moderate weakness in the dollar and the good mood in risk markets create a favorable environment for the resurgence of flow into bitcoin, although the movement is likely to be gradual, without an immediate explosion,” he added.